who wants to be an economics millionaire? olli rehn david mc williams brian lenihan lc honours...
TRANSCRIPT
Who Wants to be an Economics Millionaire?
Olli RehnDavid Mc Williams
Brian Lenihan LC Honours Student
Price Elasticity of Demand measures
The responsiveness of price to a change in income
The responsiveness of demand to a change in price
The responsiveness of supply to a change in price
The responsiveness of demand for one good to change in the price of another good
Which of the following is not a type of response?
Elastic Unit Elastic
Perfectly Unit Elastic Inelastic
An elastic response is indicated by .
Greater than one & less than infinity
One
Less than one but greater than zero
Zero
A minus sign for the Price Elasticity of Demand answer indicates?
Price & Demand don’t change
Price & Demand move in the same direction
A Price change does not affect demand
Price & Demand move in opposite directions
The Price Elasticity of Demand for a Giffen good is indicated by
Unit Elastic Answer + Answer
Perfectly Elastic Answer
- Answer
Income Elasticity of Demand for a Normal Good is?
Sometimes a negative answer
A positive answer
A negative answer An inelastic answer
Which of the following is likely to have a relatively inelastic response?
Box of Matches Luxury Sports Car
TV Ariel Washing Powder
The level of sales is 10,000 units. If the Income Elasticity of Demand is + 5 what will the new level of sales if income falls by 4%?.
14,000 units 12,000 units
8,000 units 5,000 units
If a customer spends €200 when the price is €1.50 and spends €210 when the price is decreased to €1.25 what is the type of Price elasticity of Demand response?.
Perfectly Inelastic Inelastic
Elastic Unit Elastic
In the Budget which goods are considered to be the “ Old Reliables” ?
Health, Education & Social Welfare
Cars, TV’s & Washing Machines
Cigarettes, Alcohol & Petrol
Bread, Milk & Tea
Which of the following goods will result in an increase in Total Revenue if the price is increased?
PED – 2.5 PED Zero
PED – 10 PED - 1
If the Income Elasticity of Demand for a good is – 2.5. Which of the following classifications would apply?
Could possibly be a Giffen Good
Is certain to be a Giffen Good
Is not a Giffen Good Is a Normal Good