Economics Multiple Choice Question – 22 July 2019

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Product X has a price elasticity of demand (PED) of – 3.0. Product Y has a PED of – 0.2.

Which combination of characteristics is correct?

Select ONE answer:

Table 62

 

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

  1. An equal shift to the left of the demand and supply curves will leave the equilibrium price unchanged.
  2. An equal shift to the left of the demand and supply curves will reduce the quantity traded.
  3. Correct: A decrease in supply on its own will push up the price but this would be offset by the downward pressure on the price resulting from a decrease in demand. Both lower supply and lower demand will reduce the quantity traded.
  4. If less is supplied and demand there will fewer products bought and sold.

 

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