Elasticity of Demand / Supply

Question 1

What is PED

Answer 1

How responsive the quantity demanded of a good or service is to a change in price

Question 2

Ped formula

Answer 2

% Change in Quantity demanded / % Change in price

Question 3

Elastic When

Answer 3

PED > 1

Question 4

Inelastic When

Answer 4

PED < 1

Question 5

What is PES

Answer 5

How responsive the quantity supplied is to a change in price

Question 6

PES formula

Answer 6

% change in quantity supplied / % change in price

Question 7

Elastic when

Answer 7

PES > 1

Question 8

Inelastic when

Answer 8

PES < 1

Question 9

What is YED

Answer 9

How responsive the change in quantity demanded is to a change in income

Question 10

YED formula

Answer 10

% change in quantity demanded / % change in income

Question 11

Normal Necessity When

Answer 11

YED < 1

Question 12

Normal Luxury When

Answer 12

YED > 1

Question 13

What is XED

Answer 13

How responsive the change in quantity demanded for good A is to a change in price of good B

Question 14

XED formula

Answer 14

% change in quantity demanded for good A / % change of price for good B

Question 15

Complementary goods

Answer 15

XED < 0

Question 16

Substitute goods

Answer 16

XED > 0

Question 17

Unrelated goods

Answer 17

XED = 0