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Price Elasticity
Demand Curve
General Knowledge
100

If you slow down buying because of a price increase, your demand is

Elastic

100

What would NOT shift the demand curve for a good?

Price

100

Explain the economic problem of scarcity.

  1. there are limited/finite resources and unlimited wants.
  2. limited resources are used to satisfy unlimited wants.
  3. in the process choices have to be made which leads to an opportunity cost.

 

200

When the percentage change in the price exceeds the percentage change in quantity demanded, then demand is

Inelastic

200

A good is successfully advertised. What is the impact on the demand and supply curve

Demand - Right

Supply - Left

200
Define Economies of scale

A fall in the average cost as a result of a rise in output.

300

Demand for a good is price elastic. With a 10% price rise , which fall in quantity demanded would make it elastic. 0,5,10,15%?

15%

300

What two factors may give a rise in the demand for a good?

Lower substitute Price

Lower Taxes

300

Define Opportunity Cost

The (next) best alternative foregone/not taken as a result of taking a decision/making a choice.

400

If a good has a lot of substitutes, then its demand will tend to be

Elastic

400

Illustrate an increase in population on a demand curve

DRAW

400

Identify the three questions faced by every type of economic system.


  • what to produce? 
  • how to produce? 
  • for whom to produce?
500

A graph that shows a product with elastic demand will tend to be...

Flatter

500

Name the factors of PASIFIC and explain them clearly

Population, Advertising, Substitiutes,Income Disposable, Fashion and Taste, Income Tax, Complements

500

Using a demand and supply diagram, analyse the effect of introducing an indirect tax on a product on its equilibrium price and its equilibrium quantity.

a decrease in supply will lead to a rise in the equilibrium price and a fall in equilibrium quantity.