1.2 Price Elasticity of Demand (PED)

Front

Demand is almost always more elastic at higher prices and less elastic at lower prices.

Back

True

Front

Elasticity of demand is greater in the short-run

Back

false

Front

Demand is unit elastic if it is less than 1.0

Back

False

Front

If the price of socks is reduced by 10%, how will sales be affected if the elasticity of demand of socks is 0.7?

Back

Sales will grow by less than 10%

Front

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

Back

Law of Demand

Front

The formula for calculating elasticity of demand is:

Back

The % change in quantity demanded over the % change in price

Front

The elasticity of demand for tissues is 0.66. This means the demand for tissues is

Back

inelastic

Front

Which of the following is not a determinant of demand elasticity? Availability of substitutes, share of consumer's budget spent on good, duration of adjustment period, government spending

Back

government spending

Front

If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

Back

Law of Demand and Ceteris Paribus

Front

The following is a factor that will not cause the demand curve to shift: Advertising, Population, Price, Consumer expectations

Back

Price