Month: May 2018

Demand is inelastic when a price ________ results in total revenue ________  ?

Select ONE answer:

1. fall; increasing
2. rise; decreasing
3. rise, increasing
4. fall, remaining the same

What is the implication for firms of changes in exchange rates?

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

The answer is 3

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Demand curves with which of the following shapes will have constant elasticities at every point?

Select ONE answer:

1. demand curves that are perfectly horizontal lines
2. demand curves that are perfectly vertical lines
3. demand curves that are rectangular hyperbolas
4. all of the above

What is the implication for firms of changes in interest rates?

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

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded.

Select ONE answer:

1. small; large increase
2. small; large decrease
3. large; small decrease
4. large; small increase

What is meant by the “Specialisation”?

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

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is the price elasticity of demand for oranges (using average price and average quantity) when the price of oranges changes from £200 to £160 per ton and so the quantity demanded changes from 1000 to 1400 tons?

Select ONE answer:

1. 10.00
2. 0.67
3. 0.10
4. 1.50

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

When the price of a movie ticket increases from £5 to £7,  the number of tickets demanded decreases from 600 to 400 a day.  What is the price elasticity of demand for movie tickets?

Select ONE answer:

1. 2.32
2. 0.83
3. 1.20
4. 1.00

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.