Price, Income, and Cross Elasticities (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does elasticity measure in economics?
What does elasticity measure in economics?
Responsiveness of one variable to another
If , how is demand classified?
If , how is demand classified?
Elastic demand
Price falls from 15,000 USD to 10,000 USD; quantity rises from 100,000 to 200,000. What is PED?
Price falls from 15,000 USD to 10,000 USD; quantity rises from 100,000 to 200,000. What is PED?
What shape is a perfectly inelastic demand curve?
What shape is a perfectly inelastic demand curve?
Vertical line
What is the most important determinant of price elasticity of demand?
What is the most important determinant of price elasticity of demand?
Substitutability
If total expenditure rises when price falls, what type of demand exists?
If total expenditure rises when price falls, what type of demand exists?
Elastic demand
Income falls 40%; potato demand rises 20%. What is YED?
Income falls 40%; potato demand rises 20%. What is YED?
Superior goods (luxuries) have income elasticity of demand that is:
Superior goods (luxuries) have income elasticity of demand that is:
Greater than
What does a negative cross elasticity of demand indicate?
What does a negative cross elasticity of demand indicate?
Complementary goods
For many goods, demand is more elastic in the:
For many goods, demand is more elastic in the:
Long run than short run