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King: Economics

Chapter 04

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

A student club wants to raise just enough income to cover its costs. Its income comes partly from membership fees and partly from selling tickets for its nightly discos. Attendance at the discos currently leads to overcrowding of the club's room. The demand for membership is price inelastic and the demand for discos is price elastic. To reduce the crowding without changing its total income, what should the club do?

Question 2

Suppose the price of a product increases from £12 to £20 and the quantity demanded falls from 55 a week to 45. What is the PED?

Question 3

Suppose a demand curve runs from the price axis to the quantity axis in a straight line. Whereabouts will PED=-1.0?

Question 4

A consumer product has a PED of -0.12. Which of the following factors would not help to explain this?

Question 5

Which of the following statements is true?

Question 6

Suppose incomes double over a period of years. Which sorts of product will experience the biggest increases in price?

Question 7

Suppose the price of a product increases from £50 to £70 and the quantity supplied rises from 40 a day to 80. What is the PES?

Question 8

Which of the following statements is false?

Question 9

A consumer product has a PES of 0.1. Which of the following factors would not help to explain this?

Question 10

Which of the following statements is false?