Question 1
With inelastic demand, a price rise will:
A.
Decrease total revenue B.
Increase total revenue C.
Leave TR unchanged always D.
Eliminate demand
Question 2
When calculating PED, put which change on top?
A.
% change in price B.
Total revenue C.
% change in quantity demanded D.
Price level
Question 3
What is meant by normal good?
A.
% change in Qd of A ÷ % change in P of B. B.
% change in Qs ÷ % change in P. C.
PED between 0 and -1. D.
Positive YED — demand rises as income rises.
Question 4
If XED is positive, goods are:
A.
Unrelated B.
Substitutes C.
Public goods D.
Complements
Question 5
PED = -2 means demand is:
A.
Unit elastic B.
Inelastic C.
Elastic D.
Perfectly inelastic
Question 6
What is meant by yed?
A.
PED = -1. B.
Positive YED — demand rises as income rises. C.
PED between 0 and -1. D.
% change in Qd ÷ % change in income.
Question 7
A negative YED indicates:
A.
An inferior good B.
A substitute C.
A complement D.
A luxury only
Question 8
Party Season Nearly Christmas reminds you that positive XED means:
A.
Normal goods only B.
Inferior goods C.
Substitutes D.
Complements
Question 9
What is meant by inelastic demand?
A.
Negative XED. B.
Positive XED. C.
% change in Qd ÷ % change in income. D.
PED between 0 and -1.
Question 10
What is meant by ped?
A.
PED between 0 and -1. B.
Positive XED. C.
% change in Qd ÷ % change in P — responsiveness of demand to price. D.
% change in Qs ÷ % change in P.
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