G10 PED & Place

• Business Studies
• Secondary Education

Thursday, 26th October 2023

we buy many things everyday to what we want to what we really need

if something is expensive you will think about buying or not buying it depending on the value and availability

wordwall.net

we buy many things everyday to what we want to what we really need

if something is expensive you will think about buying or not buying it depending on the value and availability

2.00 AED > 2.20 AED

Elastic- customer demand reacts a lot to price changes= not a necessity - exclusive items with premium pricing

Inelastic- customer demand is not very reactive to price changes= necessity

Unitary= comfort goods for example like TV, gym equipment

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. To increase market share by producing more 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.
Use the formula to calculate the PED (% change in quantity demand ÷ % change in price)
% change in quantity: 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

Distribution channels

1                    2               3               4

Durable goods are made to last three or

more years, for example, bicycles, furniture and cars. Non-durable goods are goods that

are used for three years or less.

e-commerce website

Heba has a healthy frozen yoghurt business. She needs to distribute the goods to the consumers quickly. Which factor is this an example of?

1. consumer/ industrial goods
2. frequency of purchase
3. perishable goods
4. location of customers

Shahla has a candle and essential oils business where she is responsible for packing and arranging the delivery of goods to her international customers. Which distribution is this an example of?

1. supermarket
2. e-commerce website
3. department store
4. factory