What does the Price Elasticity of Demand (PED) measure?

The change in quantity demanded in response to price changes

The total revenue generated by a firm

Which factor contributes to higher price elasticity of demand (PED)?

High addictiveness of the product

Low availability of substitutes

Price represents a large proportion of income

Why is price elasticity of demand important for businesses?

It helps in determining tax rates

It determines the government subsidies

It affects the cost of production

In which scenario would a firm likely increase prices according to the total revenue rule?

When there are many substitutes available

When consumers have a higher income

How does time period affect price elasticity of demand?

Short term shows higher elasticity

Short term shows lower elasticity

Long term shows higher elasticity

Long term shows lower elasticity

What does a demand curve with high elasticity indicate?

Consumers are responsive to price changes

Consumers are not affected by price changes

There are no substitutes available

The product is essential and addictive

How can governments use knowledge of PED for taxation purposes?

Tax products with elastic demand more

Tax products with inelastic demand more

What is a strategy businesses can use based on price elasticity of demand?

Increase prices for elastic products

Decrease prices for inelastic products

Increase prices for all products

Decrease prices for all products

Why is understanding PED crucial for governments?

It helps in setting maximum prices

It guides decisions on subsidies

It determines import/export policies

What does price inelastic demand imply for a product?

Consumers are highly responsive to price changes

Consumers are not affected by price changes

Consumers buy less when prices increase

Consumers buy more when prices increase

Price Elasticity of Demand (PED) Free MCQ Practice Test with Solutions

	Economics for GCSE/IGCSE 71 videos\|82 docs\|39 tests

	Economics for GCSE/IGCSE 71 videos\|82 docs\|39 tests

Important Questions for Price Elasticity of Demand (PED)

Find all the important questions for Price Elasticity of Demand (PED) at EduRev.Get fully prepared for Price Elasticity of Demand (PED) with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Price Elasticity of Demand (PED) syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Price Elasticity of Demand (PED) resources.

Price Elasticity of Demand (PED) MCQs with Answers

Prepare for the Price Elasticity of Demand (PED) within the Year 11 exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Price Elasticity of Demand (PED) Economics for GCSE/IGCSE

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Price Elasticity of Demand (PED) with ease. Join thousands of successful students who have benefited from our trusted online resources.

Education Revolution