IB Business Management 4.5 Price Elasticity of Demand HL
Authored by Kate Gleaves
Business
9th Grade
Used 3+ times
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15 questions
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1.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What does a PED value of -2 indicate?
Demand is inelastic
Demand is elastic
Demand is perfectly inelastic
Demand is unitary elastic
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If PED is -0.5, demand is considered:
Perfectly elastic
Inelastic
Elastic
Unrelated to price
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When demand is inelastic and price increases, what happens to total revenue?
It falls
It stays the same
It increases
It becomes zero
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a firm reduces the price of a product with elastic demand, revenue will:
Stay the same
Increase
Decrease
Become unpredictable
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A PED value of -1 means:
Price changes have no effect on quantity demanded
Revenue remains unchanged after a price change
Revenue will always increase
Demand is perfectly elastic
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
One key determinant of PED is:
The number of suppliers in the market
The availability of substitutes
The inflation rate
The brand’s logo design
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Products with many close substitutes tend to have:
Inelastic demand
Perfectly inelastic demand
Elastic demand
No demand
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