Elasticity (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What does elasticity measure in economics?
What does elasticity measure in economics?
How sensitive one variable is to another
Why is price elasticity of demand (PED) always negative?
Why is price elasticity of demand (PED) always negative?
Price & quantity demanded move in opposite
If PED is (ignoring sign), how is demand classified?
If PED is (ignoring sign), how is demand classified?
Price elastic
Where on a straight-line demand curve is elasticity equal to ?
Where on a straight-line demand curve is elasticity equal to ?
At the midpoint
What is the most important factor influencing price elasticity of demand?
What is the most important factor influencing price elasticity of demand?
Availability of substitutes
How does time period affect price elasticity of demand?
How does time period affect price elasticity of demand?
More elastic in long run than short run
If demand is elastic, what happens to total revenue when price falls?
If demand is elastic, what happens to total revenue when price falls?
Total revenue rises
If YED for a good is , what type of good is it?
If YED for a good is , what type of good is it?
Inferior good
A good has YED of . How is this good classified?
A good has YED of . How is this good classified?
Luxury good
If XED between two goods is positive, what is their relationship?
If XED between two goods is positive, what is their relationship?
They are substitutes