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WorksheetsDemand & Elasticity Quiz
Total questions: 12
Worksheet time: 12mins
In North America the cross elasticity of demand for coffee with respect to a change in the price of milk was estimated to be –0.04. Which one of the following can be deduced from this information?
Coffee and milk are inferior goods
Coffee and milk are substitute goods
Coffee and milk are unrelated goods
Coffee and milk are complementary goods
The diagram shows the demand curve for bottled energy drinks. Which one of the following points has the value of –1 for price elasticity of demand?
In 2022 average house prices in China decreased by 2.1%. Research into the housing market in China estimated that the price elasticity of supply for new houses was 2.8. Ceteris paribus, which one of the following can be deduced from this information?
The supply of new houses would decrease by 5.88%
The supply of new houses would increase by 5.88%
The supply of new houses would increase by 1.33%
The supply of new houses would decrease by 1.33%
The cross elasticity of demand for Pepsi Cola with respect to a change in the price of Coca-Cola is estimated to be +0.62 in North America. Which one of the following can be deduced from this information?
Pepsi Cola and Coca-Cola are complements
Pepsi Cola and Coca-Cola are substitutes
Pepsi Cola and Coca-Cola are unrelated goods
Pepsi Cola and Coca-Cola are normal goods
The table shows the estimated price elasticity of demand for different car types in Norway. Which one of the following can be deduced from the table?
Demand for all three car types is price inelastic
Demand for all three car types is price elastic
An increase in the price of diesel cars will result in an increase in the total revenue for diesel car manufacturers
An increase in the price of electric cars will result in an increase in the total revenue for electric car manufacturers
The diagram illustrates the relationship between the price of PlayStation 5 games consoles and the quantity demanded of Xbox Series X games consoles. Which one of the following can be deduced from the diagram about the relationship between PlayStation 5 games consoles and Xbox Series X games consoles?
They are substitutes
They are complements
They are unrelated goods
They are inferior goods
It was estimated that the price elasticity of demand for cereals was –0.6 and for fruit it was –0.7. Which one of the following factors is most likely to cause demand for a product to be price inelastic?
There are legal constraints on manufacturing the product
There are large stocks of the product available
The product has many substitutes
The product lacks substitutes
The table shows the quantity of shirts that would be sold at different selling prices by a textile manufacturer based in Botswana. Which one of the following would be the textile manufacturer’s marginal revenue if the price was reduced from $16 to $14?
$0
$4
$12
$14
In Australia the elasticity of demand for construction workers is estimated to be –0.18. Which one of the following factors is the most likely explanation of this elasticity of demand for construction workers?
The construction workers cannot be easily replaced by capital
The costs of employing construction workers are low
The productivity of construction workers is low
The majority of construction workers are members of trade unions
In 2022 the average price of a standard cinema ticket in Johannesburg, South Africa, was R60 in the daytime and R105 in the evening. Which one of the following is the most likely reason for this price difference?
The demand for cinema tickets is more price inelastic in the daytime than in the evening
The demand for cinema tickets is more price elastic in the daytime than in the evening
The supply of cinema tickets is perfectly price elastic
The supply of cinema tickets is more price elastic in the evening than in the daytime
The elasticity of demand for agricultural workers in South Africa is estimated to be –0.3. Which one of the following is the most likely reason for this value of the elasticity of demand for labour?
Labour cannot be easily replaced by capital
Wage rates are relatively high in the agricultural industry
Consumer demand for the final product is price elastic
Productivity is relatively low in the agricultural industry
Which one of the following will influence the elasticity of demand for labour?
The size of the population
The level of welfare benefits
Labour costs as a percentage of total costs
The rules determining the number of immigrants
