Economics Multiple Choice Question – 10 November 2017

Price elasticity of demand measures?

Select ONE answer:

1. % change in quantity demanded compared to % change in price
2. % change in quantity supplied compared to % change in price
3. % change in price compared to % change in supply
4. % change in quantity demanded compared to % change in income
5. % change in quantity demanded compared to % change in advertising

Explain what is meant by price-inelastic demand:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1 – The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. Necessities tend to have inelastic demand.

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