IGCSE Economics-Elasticity

Front

Price elasticity of demand measures:

Back

the responsiveness of the quantity demanded of a good to a one per cent change in price

Front

Using the midpoint formula, what is the price elasticity of demand for a basketball if the quantity demanded falls from 7000 to 4000 per week after its price increases from $60 to $150?

Back

0.636

Front

Price elasticity of demand when bus ticket price rises from $2.75 to $3 and sales fall from 10,000 to 8,500.

Back

elastic

Front

Price elasticity of demand when bus ticket price rises from $2.75 to $3.75 and tickets sold fall from 9000 to 7800.

Back

0.464

Front

The price elasticity of demand for a vertical demand curve is:

Back

perfectly inelastic

Front

If demand is ELASTIC,

Back

it reacts a lot to price changes

Front

Select a product with ELASTIC demand: petrol, make up, electricity bill

Back

make up

Front

Unitary Elastic Demand

Back

change in price leads to an equal change in demand

Front

Select a Unitary Elastic product: bread, electricity bill, make up

Back

electricity bill

Front

INELASTIC demand

Back

demand doesn't react a lot to price changes