Month: August 2018

If the demand curve is a downward sloping straight line, the price elasticity of demand always …..

Select ONE answer:

1. decreases with movements upward to the left along the demand curve.
2. increases as the demand curve shifts leftward.
3. increases with movements upward to the left along the demand curve.
4. increases as the demand curve shifts rightward.

Explain how changes in the number of firms in an industry may cause a shift in the supply curve:

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

The answer is 3

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When the percentage change in the quantity demanded is less than the percentage change in the price, then …..

Select ONE answer:

1. demand is unit elastic.
2. demand is elastic.
3. demand is inelastic.
4. the good is an inferior good.

Explain how subsidies may cause a shift in the supply curve:

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This is a 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.

If the demand for a good is elastic, that means that when price increases…..

Select ONE answer:

1. the quantity demanded will decrease by a greater percentage than the price increase.
2. the quantity demanded will decrease by a smaller percentage than the price increase. 
3. the demand will decrease.
4. the quantity demanded will increase.

Explain how indirect taxes may cause a shift in the supply curve:

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

The answer is 4

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A local pizzeria raised its price from £9 to £11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case?

Select ONE answer:

1. -1/2
2. 1/2
3. -2
4. 2

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

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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.

When the price of a theatre 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 theatre tickets?

Select ONE answer:

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

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 2

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