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Quick Revision Quiz
What is the PED value range for price Elastic Products?
-∞ to -1
Say the technology used to produce a product has improved in productivity. What will happen to the supply curve?
Shift right (More will be produced at any given price)
Fill in the blank: If demand is price elastic it means that Quantity Demanded changes ____ than ______ following a change in price
more . . . proportionally
Define Derived Demand
When demand for one product is driven by the demand for another product.
What is the YED range for Inferior Goods?
-∞ to 0 (Negaitive figure)
What is the YED range for Luxury Goods?
1 to ∞
Define Marginal Cost
The cost to a business of producing one more unit of production
On a linear demand curve, revenue is maximised where PED = _____ .
-1
Describe and draw the effect on equilibrium diagram of: More Demand
→ Demand shifts right → Higher Price → Higher Quantity
Draw the number line showing XED values, including Complements/Substitutes and Elastic/Inelastic
Number of Columns:
1
2
3
4
Gap:
-
+
Width:
-
+
