PED and PES

PED is defined as the

• responsiveness of price to a change in quantity demand.

• responsiveness of price to a change in quantity demanded, ceteris paribus.

• responsiveness of quantity demanded to a change in price.

• responsiveness of quantity demanded to a change in price, ceteris paribus.

The formula for PED is

• $\frac{Q}{P}$

• $\frac{\Delta Q}{\Delta P}$

• $\frac{\%\Delta Q}{\%\Delta P}$

• $\frac{\%\Delta P}{\%\Delta Q}$

Which of the following is NOT true when PED > 1?

• The demand for the good is price elastic.

• The demand for the good is price inelastic.

• When the price of the good rises, the quantity demanded will fall more than proportionate.

• There are many close substitutes for the good.

Which of the following will not cause the value of PED to be less than 1?

• The expenditure for the good is a large proportion of total income.

• There are few close substitutes.

• The good is a necessity.

• There is inadequate time for the consumers to find alternatives.

PES is defined as 

• the responsiveness of quantity demanded to a change in price of the good itself.
• the responsiveness of quantity demanded to a change in price of the good itself, ceteris paribus.
• the responsiveness of quantity supplied to a change in price of the good itself.
• the responsiveness of quantity supplied to a change in the price of good itself, ceteris paribus.

The formula for PES is 

• % change in P/% change in Qs
• % change in Qs/% change in P
• % change in P/% change in Qd
• % change in Qd/% change in P

The value of PES is between 0 and 1 when

• quantity supplied increases more than proportionately compared to price rise.
• quantity supplied increases less than proportionately compared to price rise.
• quantity supplied increases more than proportionately compared to price fall. 
• quantity supplied increases less than proportionately compared to price fall. 

The value of PES is more than 1 when

• quantity supplied decreases less than proportionately compared to price fall. 
• the quantity supplied decreases more than proportionately compared to price fall.
• the quantity supplied decreases less than proportionately compared to price rise.
• the quantity supplied decreases more than proportionately compared to price rise. 

The supply of perishable good such as bananas is more price _______ than durable goods such as smart phones because of lack of ________ for perishable goods.  

• inelastic, good weather
• elastic, good weather
• inelastic, stock
• elastic, stock

When a factory is running at full capacity, it means all its machinery is ________ utilised and the supply of the good will be price _______. 

• fully, elastic
• fully, inelastic
• under, elastic
• under, inelastic