WorksheetsELASTICITY OF DEMAND AND SUPPLY
Total questions: 21
Worksheet time: 16mins
The responsiveness of the quantity demanded to a change in price is called
(a)
The responsiveness of the quantity supplied to a change in price.
(a)
When demand is perfectly inelastic PED is equal to
(a)
When supply is inelastic PES is
(a)
Which of these shows elastic demand?
Which of these shows inelastic demand?
Factory owner Susan has calculated that her PES is 3. This number means that,
if price were to rise by 2% Susan would supply 6% more products.
If price were to rise by 2% Susan would supply 3% more products.
the percentage change in price is three times the percentage change in quantity.
in the PES formula, the top number is smaller than the bottom number.
If the supply curve of a product is vertical, PES is equal to
0.
1.
-1.
infinity.
If the price of a product doubled and in response the quantity supplied also doubled then the PES is equal to
1
-1
2
o
What does it mean?
Ed = ∞
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Elastic demand
Perfectly elastic demand
During the COVID 19 Pandemic we are all experiencing now, and the information campaign from the Center for Disease Control highlighting that bacteria and other organisms cause and spread disease, will the demand curve for soap be more elastic or more inelastic?
More elastic
More inelastic
Water has seen an increase in demand 8% this summer, while the price has decreased 12%
1.5 inelastic
1.5 elastic
.67 inelastic
.67 elastic
Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.
elastic
unitary elastic
inelastic
hyperelastic
Prada has seen a increase in demand of 70%, while the price has decreased 35%
.5 inelastic
.5 elastic
2 inelastic
2 elastic
PES =
% change in quantity supplied of the product / % change in price of the product
% change in price of the product / % change in quantity supplied of the product
% change in quantity supplied of the product * % change in price of the product
% change in quantity supplied of the product - % change in price of the product
for PES = 1
PES is perfectly elastic
PES is unit elastic
PES is perfectly inelastic
PES is elastic
When the % change in price is greater than the % change in quantity supplied, then supply is said to be:
Elastic
Inelastic
Unitary
Perfectly elastic
