PED & PES Calculation

PED: If a cinema increases its average ticket from $5 to $8 and this leads to demand falling from 4500 to 4000 customers per week, then what is the value of PED? (1 decimal place)

• 0.4

• 0.3

• 0.2

• 0.1

Based on your answer to the no. 1 question, what is the elasticity of demand for cinema tickets?

• price inelastic

• price elastic

Which of the following is NOT the reason why a supply of a product or service is considered price inelastic?

• Firms operating to full capacity

• Firms have low level of stocks (no surplus of goods to sell)

• if the products required high skilled workers, it would be difficult to hire them in short period of time

• The product can be sold from the internet which increases the scope of international competition

Which of the following is the correct example of price inelastic supply?

• seasonal fruits that only harvest once in a year

• fidget spinner

• Products sold during recession (bad economy)

• Taxi services

If the market for durian increases from Rp. 10,000 to Rp. 12,500 per kilo, which leads to an increase in units sold from 500 to 600, calculate the PES.

• 0.25

• 1

• 0.8

• 1.25