Day: December 18, 2017

Economics Multiple Choice Question – 18 December 2017

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

If revenue falls after a price increase, the price elasticity of demand is?

Select ONE answer:

  1. Zero
  2. 1
  3. Less than 1
  4. More than 1
  5. Positive

What is the value of the price elasticity of demand is price inelastic:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – If PED > 1, then demand responds more than proportionately to a change in price i.e. demand is elastic. For example, if a 10% increase in the price of a good leads to a 30% drop in demand. The price elasticity of demand for this price change is –3

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