Category: Economics

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

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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:

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

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

The answer is 4

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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

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The price elasticity of demand equals the magnitude of …..

Select ONE answer:

1. the slope of the demand curve. 
2. the percentage change in the price of a good divided by the percentage change in the quantity demanded. 
3. the inverse of the slope of the demand curve. 
4. the percentage change in the quantity demanded of a good divided by the percentage change in its price.

Explain how the introduction of new technology may cause a shift in the supply curve:

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

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.