Question 1

Price elasticity of demand (PED) measures:

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Question 2

If the cross elasticity of demand (XED) between goods A and B is −0.8, the goods are:

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Question 3

Total revenue is calculated as:

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Question 4

Define price elasticity of demand and explain the difference between elastic and inelastic demand.

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Question 5

State what is meant by a normal good.

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Question 6

State what a negative value of XED indicates about two goods.

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Question 7

State what a positive value of XED indicates about two goods.

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Question 8

Define price elasticity of demand and explain the difference between elastic and inelastic demand.

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Question 9

Income elasticity of demand (YED) measures:

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Question 10

A good with a negative income elasticity of demand is classified as:

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Question 11

Income elasticity of demand (YED) measures:

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Question 12

State what is meant by an inferior good.

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Question 13

Total revenue is calculated as:

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Question 14

State what a positive value of XED indicates about two goods.

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Question 15

Price elasticity of demand (PED) measures:

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Question 16

State what is meant by a normal good.

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Question 17

State what is meant by an inferior good.

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Question 18

State what a negative value of XED indicates about two goods.

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Question 19

A good with a negative income elasticity of demand is classified as:

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Question 20

If the price of a good rises by 10% and the quantity demanded falls by 20%, the PED is:

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Topic 2.5: Elasticity of Demand Questions

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