Category: Economics

If the cross elasticity of demand is -5 between french fries and orange drink, then french fries

Select ONE answer:

1. and orange drink are substitutes.
2. are a normal good and orange drink is an inferior good.
3. and orange drink are complements.
4. are an inferior good and orange drink is a normal good.

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

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

The answer is 3

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The cross elasticity of demand for pizza with respect to the price of a soda is

Select ONE answer:

1. negative because the goods are complements.
2. positive because the goods are complements.
3. negative because the goods are substitutes.
4. positive because the goods are substitutes.

What is the the distinction between movements along a demand curve and shifts of a demand curve?

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

The answer is 1

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The demand for ________ is more elastic than the demand for ________.

Select ONE answer:

1. Pepsi; all soft beverages
2. food; exotic vacations
3. all personal computers; Dell computers
4. chewing gum; cars

What is the implication on demand of consumer objectives and decisions?

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

The answer is 1

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If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, the cross elasticity is ________ and the two goods are ________.

Select ONE answer:

1. 2/3, substitutes
2. 3/2, substitutes
3. 2/3, complements
4. 3/2, complements

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 1

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

“Last October, due to an early frost, the average price for a pumpkin increased by 10 percent compared to the average pumpkin price in previous Halloween seasons. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million.”  Based on this statement, the ……..

Select ONE answer:

1. demand curve for pumpkins shifted rightward.
2. demand for pumpkins is elastic.
3. demand for pumpkins is unit elastic.
4. demand for pumpkins is inelastic.

What is the implication for firms of changes in economic growth?

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This is 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.