A revision quiz on elasticities including PED, YED, XED, and PES, covering calculations, determinants, and tax incidence. Test your knowledge with this…
10 questions • Zestly
• Which of the following factors generally contribute to a more price-inelastic demand for a good?
• If a firm faces an elastic demand curve, what is the effect of a price increase on its total revenue?
• An income elasticity of demand (YED) of +2.5 indicates which type of good?
• Which of the following scenarios describe goods with a positive cross elasticity of demand (XED)?
• Which factors increase the price elasticity of supply (PES)?
• If an indirect tax is imposed on a good with perfectly inelastic demand, who bears the full burden of the tax?
• A product has a YED of -0.5. What happens to demand if consumer incomes rise by 10%?
• Which of the following are true regarding the relationship between PED and tax incidence?
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