PED Concepts Quiz

Froggy Jumps

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Test your PED knowledge.

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Nugrahani Nugrahani

Indonesia

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PED Concepts Quiz


Froggy Jumps PED Concepts QuizOnline version Test your PED knowledge. by Nugrahani Nugrahani 1 How might the concept of price elasticity of demand (PED) be useful for a government? a To calculate the effect of inflation on employment. b To predict the impact of a tax on cigarettes on revenue. c To subsidise farmers. 2 A firm finds that the PED for its product is -0.8. What does this mean? a Demand is price elastic. b Demand is price inelastic. c Demand is unitary elastic. 3 If the PED for pizzas is -1.2, what happens to demand if the price falls by 10%? a Demand decreases by 12% b Demand increases by 12%. c Demand increases by 8% 4 A farmer increases the price of corn from $4 to $8, and demand rises from 100 to 300 units. What is the PED? a +2.0 b +1.0 c +0.5 5 What is the effect of an increase in the price of printers on the demand for ink cartridges? a Demand decreases. b Demand stays the same. c Demand increases. 6 Which situation causes a movement along the demand curve for bread? a A fall in consumers’ income b A successful advertising campaign c A rise in the price of bread. 7 The demand curve for bottled water shifts to the right. What could cause this? a A successful advertising campaign. b A fall in consumer incomes c A decrease in population 8 Which combination would cause equilibrium price to fall and equilibrium quantity to rise? a Demand increases, supply increases. b Demand decreases, supply increases c Demand decreases, supply decreases 9 When the price of movie tickets rises from $6 to $8, demand falls from 200 to 100 tickets. What is the PED? a Greater than 1 b Equal to 1 c Less than 1 10 Which change could cause the price of coffee to rise? a An increase in the supply of coffee b A decrease in the demand for coffee c A rise in the price of a substitute good.

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PED Concepts Quiz

Froggy Jumps

About this activity

Created by

Download the paper version to play

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PED Concepts QuizOnline version

by Nugrahani Nugrahani

How might the concept of price elasticity of demand (PED) be useful for a government?

A firm finds that the PED for its product is -0.8. What does this mean?

If the PED for pizzas is -1.2, what happens to demand if the price falls by 10%?

A farmer increases the price of corn from $4 to $8, and demand rises from 100 to 300 units. What is the PED?

What is the effect of an increase in the price of printers on the demand for ink cartridges?

Which situation causes a movement along the demand curve for bread?

The demand curve for bottled water shifts to the right. What could cause this?

Which combination would cause equilibrium price to fall and equilibrium quantity to rise?

When the price of movie tickets rises from $6 to $8, demand falls from 200 to 100 tickets. What is the PED?

Which change could cause the price of coffee to rise?