Economics Multiple Choice Question – 14 December 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics

If the demand for a product is price elastic, this means?

Select ONE answer:

  1. A change in price has no effect on the quantity demanded
  2. A change in income has no effect on the quantity demanded
  3. An increase in price increases revenue
  4. An increase in price increases profits
  5. An increase in price decreases costs

What is the normal value of price elasticity of a product, if the demand is price inelastic:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3 – The formula for calculating the price elasticity of demand is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price. If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes).

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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