Month: August 2018

A supply curve that is horizontal reflects a supply that …….

Select ONE answer:

1. is elastic
2. is unit elastic
3. is inelastic
4. has a zero elasticity

Explain the use of the supply and demand model to show how shifts in demand and supply curves cause the equilibrium price and quantity to change in real-world situations:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1

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The income elasticity of demand is ________ for a normal good and ________ for an inferior good .…….

Select ONE answer:

1. positive; negative
2. negative; negative
3. positive; positive
4. negative; positive

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

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

The answer is 1

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

If peanut butter and jelly are complements, then their cross elasticity of demand must be …….

Select ONE answer:

1. a number between zero and one.
2. a positive number that might be greater than 1.
3. infinitely high.
4. a negative number.

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

This is a 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.

For many goods, the price elasticity of demand increases over time after a price hike because …….

Select ONE answer:

1. the ability to find good substitutes for the product whose price rose increases over time.
2. inflation causes all prices and incomes to increase over time.
3. consumer incomes tend to increase over time.
4. ALL of the above answers are correct.

Explain what is the operation of market forces to eliminate excess demand and excess supply:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1

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

The closer the substitutes for a good, the …….

Select ONE answer:

1. more elastic is the demand for the good.
2. less elastic is the demand for the good.
3. smaller the degree of substitutability between the goods.
4. larger the proportion of income that is spent on the good.

Explain what is the use of supply and demand diagrams to depict excess supply and excess demand:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1

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