Determinants of demand for a good or service in a market quick economics quiz 3.5 / 5 based on 9 ratings ? EconomicsMacroeconomic indicatorsASEdexcel Created by: LottieCreated on: 19-12-11 16:46 What is a market? a place where buyers & sellers meet for exchange 1 of 22 Is price the exchange value? True 2 of 22 What does a product market refer to? the utility that derives from a good/ service as the customer wants these 3 of 22 What is a commodity market? a market that sells raw materials/minerals which are used in production of goods/services 4 of 22 Do labour markets buy a sell labour for goods and services e.g. teachers? True 5 of 22 What is demand? the quantity of a good/service purchased at a given price over a given time 6 of 22 What is essential about effective demand? it has to be backed by money 7 of 22 There is a contraction(upwards) in the demand curve if... price increases 8 of 22 There is a extention in the demand curve if.... the price decreases 9 of 22 What does PED measure? the responsiveness of demand due to a change in price 10 of 22 How do you calculate PED? % CHANGE IN DEMAND/%CHANGE IN PRICE 11 of 22 What does it mean if PED=1 unit elasticity- same change 12 of 22 What does it mean if PED= infinity? perfectly inelastic= no effect on D 13 of 22 What does it mean if PED=0? perfectly inelastic= no effect on D 14 of 22 Total revenue measures the total payments from what a firm has sold? True 15 of 22 What must the elasticity be to increase revenue? unit elasticity 16 of 22 What does the elasticity need to be to decrease revenue? elastic/inelastic 17 of 22 What makes something Price elastic of demand? substitutes, luxury, high prices, long time periods 18 of 22 What makes something Price inelastic of demand? necessity,cheap prices,addictivem short time periods 19 of 22 What does YED measure and how is it calculated? responsiveness of demand to change in income and it is calculated by % change in demand/ %change in income 20 of 22 Is it true that with normal goods the more income the more demand and with inferior goods it is the opposite? True 21 of 22 What does XED measure? responsiveness fo D of good 1 to change in P of good 2 22 of 22
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