
Theme 1 - Markets - Price Elasticity (demand and supply)
Quiz by Mark Seccombe
Assume the PED for best quality French wine is zero. What would be the effect in New Zealand if the New Zealand government imposed a tariff on such wine?
The price elasticity of supply of cocoa beans over a given time period is found to be +0.4, the most likely explanation for this PES value is that
The price elasticity of demand for late night taxi fares is found to be -0.7. This implies that
A good has unitary PED and at a price of $25 it sells 100,000 units. If it lowers the price by 10%, what will happen to total revenue?
Which statement about income elasticity of demand is correct?
What would increase the price elasticity of supply of a firm's products?
Product R is an inferior good with no close substitutes. It is also a complement to Product S. Which describes product R?
The price of good X rises by 10%. As a result, the demand for a substitute good Y rises by 20%. What is the cross elasticity of demand for good Y with respect to good X?
What will make it more likely that road tolls will reduce traffic congestion?
If the demand curve for a product has unitary price elasticity across all relevant price levels then