G10 T1 Price Elasticity Demand

• Business Studies
• Secondary Education

What is the selling price of this product? 

73.00 AED

What is the selling price of this product? 

460 AED

What is the selling price of this product? 

80 AED

What is the selling price of this product? 

216 AED

The Demand curve shows that low price means lower demand.

1. true
2. false
3. -
4. -

What is Price Elasticity Demand used for?

1. For businesses to check how demand changes when the price is changed
2. For businesses to calculate the effect of demand on high price.
3. -
4. -

What are substitutes?

1. Products that satisfy customer demand needs.
2. Products that satisfy the needs and wants as another product.
3. Products that effect demand as other products.
4. -

Inelastic means customer demand doesn't react a lot to price changes.

1. true
2. false
3. -
4. -

A value equal to 1 means the product is...

1. elastic
2. inelastic
3. unitary elastic

A value less than 1 means the product is...

1. elastic
2. inelastic
3. unitary elastic

Alia sells hand-made soaps in Ajman City Centre.
% change in quantity demand: increased 30%
% change in price: decreased 10%

1. 0.3
2. 3
3. 3.1

According to the PED calculation, Alia's products are...

1. elastic
2. inelastic
3. unitary elastic