The Dynamics of Markets: Price Elasticity (Grade 11 NSC Matric 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 income elasticity of demand measure?
What does income elasticity of demand measure?
How income changes affect qty demanded
Which formula calculates income elasticity of demand?
Which formula calculates income elasticity of demand?
\frac{\text{% change qty demanded}}{\text{% change income}}
What income elasticity value indicates a necessity good?
What income elasticity value indicates a necessity good?
Less than 1
What income elasticity value indicates a luxury good?
What income elasticity value indicates a luxury good?
Greater than 1
What type of income elasticity do inferior goods have?
What type of income elasticity do inferior goods have?
Negative value
If biltong has elasticity of 1.36, what happens when income rises 10%?
If biltong has elasticity of 1.36, what happens when income rises 10%?
Demand rises 13.6%
Candles have elasticity of -0.20. What happens when poor household income rises 10%?
Candles have elasticity of -0.20. What happens when poor household income rises 10%?
Candle demand falls 2%
Which of these is an example of a necessity good?
Which of these is an example of a necessity good?
Electricity for homes
What happens to luxury goods during economic downturns?
What happens to luxury goods during economic downturns?
Demand decreases sharply
How do people spend additional income when they earn more?
How do people spend additional income when they earn more?
Follow predictable spending patterns