E17

Question 1

Contraction of demand

Answer 1

Due to the rise in prices, the quantity demanded falls

Question 2

Extension of demand

Answer 2

Due to the increase in quantity demanded. Price falls

Question 3

Ped

Answer 3

Measures the responsiveness of the quantity demanded to a change in the price of a good

Question 4

Total revenue

Answer 4

The amount of money a firm receives when selling a product

Question 5

Perfectly elastic demand

Answer 5

The quantity demanded remains the same although the price changes

Question 6

Inelastic demand

Answer 6

The quantity demanded changes at lesser rate than price

Question 7

Unit elastic demand

Answer 7

The quantity demanded changes at the same rate as the price

Question 8

Elastic demand

Answer 8

The quantity demanded changes at a greater rate than price

Question 9

Perfectly elastic demand

Answer 9

Any quantity is demanded at a given price

Question 10

PES

Answer 10

Measures the responsiveness of the quantity supplied to a change in the price of a good