1.2.3 - PED, YED, XED, PES

Question 1

When ped = 0 demand is

Answer 1

perfectly inelastic

Question 2

when ped > 1 demand is

Answer 2

demand is price elastic

Question 3

When ped < 1 demand is

Answer 3

demand is price inelastic

Question 4

When ped = 1

Answer 4

demand is unit price elastic

Question 5

necessities have a YED of

Answer 5

0

Question 6

what is yed

Answer 6

Income elasticity of demand, Relationship between a change in consumers income and quantity demanded.

Question 7

luxury goods have a yed of

Answer 7

> 1

Question 8

YED < 0 the good is a

Answer 8

inferior good

Question 9

What is the formula for XED

Answer 9

%Change in demand of good A / %Change in price of good B

Question 10

What is PES

Answer 10

How much quantity supplied changes in response to a change in price.

Question 11

can pes be negative

Answer 11

no ALL PES are positive.

Question 12

If xed is > 1 the good is ..

Answer 12

cross price elastic

Question 13

if xed is < 1 the good is

Answer 13

cross price inelastic

Question 14

factors affecting pes (4)

Answer 14

time scale

spare capacity

level of stocks

barriers to entry of market

Question 15

if pes is > 1

Answer 15

supply is elastic

Question 16

if pes is = 0

Answer 16

supply perfectly inelastic

Question 17

if pes = infinity

Answer 17

supply is perfectly elastic

Question 18

if pes is < 1

Answer 18

supply is inelastic

Question 19

XED = negative goods are

Answer 19

complementary

Question 20

XED = positive goods are

Answer 20

substitutes

Question 21

XED = 0 goods are

Answer 21

unrelated goods