Economics Multiple Choice Question – 20 December 2017

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

Economics

For a price-inelastic product?

Select ONE answer:

  1. Demand never changes
  2. Demand does not change with income
  3. You can always charge the highest price in the market
  4. Demand does not change with price
  5. The change in quantity demanded is proportionately less than the change in price (in percentages)

Give the equation for income elasticity of demand:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 5 – If PED is between 0 and 1 (i.e. the % change in demand from A to B is smaller than the percentage change in price), then demand is inelastic.

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Author: stuart001uk2014

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

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