Lesson 2.6.2
2.6.2 Income, cross and price elasticity of supply Quiz: OCR Economics, Unit 2
20 questions
In partnership with Revision Ninja
Lesson 2.6.2, Income, cross and price elasticity of supply: 20 multiple choice questions for the OCR Economics (H460), Unit 2: The role of markets, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
What type of good has a positive income elasticity of demand?
- Substitute good
- Complementary good
- Normal good
- Inferior good
-
Which term describes a good with a negative income elasticity of demand?
- Giffen good
- Normal good
- Inferior good
- Luxury good
-
What range of income elasticity of demand defines a luxury good?
- Less than 0
- 0 to +1
- Exactly 0
- Greater than +1
-
What sign does cross elasticity of demand have for substitute goods?
- Negative
- Infinite
- Positive
- Zero
-
What sign does cross elasticity of demand have for complementary goods?
- Positive
- Infinite
- Negative
- Zero
-
What is the cross elasticity of demand between two completely unrelated goods?
- Infinite
- Negative
- Zero
- Positive
-
What measure calculates the responsiveness of quantity supplied to a change in price?
- Income elasticity of demand
- Cross elasticity of demand
- Price elasticity of demand
- Price elasticity of supply
-
What value of price elasticity of supply represents a perfectly inelastic supply curve?
- Minus one
- One
- Zero
- Infinity
-
If income rises by 10% and quantity demanded falls by 5%, what is the YED?
- +0.5
- +2.0
- -0.5
- -2.0
-
If the price of Good A rises 20% and demand for Good B falls 10%, what is XED?
- -0.5
- +2.0
- +0.5
- -2.0
-
If price increases by 15% and quantity supplied increases by 30%, what is the PES?
- +2.0
- +4.5
- +0.5
- +1.5
-
If consumer income rises by 5% and sales of basic bread fall by 3%, what is basic bread?
- Complementary good
- Inferior good
- Normal necessity
- Luxury good
-
A rise in coffee price increases tea demand. What relationship does this show?
- Inferior goods
- Unrelated goods
- Strong complements
- Close substitutes
-
Which factor makes the price elasticity of supply for a product more elastic?
- Perishable goods
- Limited raw materials
- Long production times
- High spare capacity
-
Why is the price elasticity of supply usually higher in the long run?
- Demand is lower
- Prices are stable
- Factors are variable
- Costs are fixed
-
If income rises by 10% and demand for milk rises by 2%, what is milk?
- Income elastic luxury
- Income inelastic necessity
- Perfectly elastic good
- Inferior good
-
What is the shape of a supply curve when price elasticity of supply is zero?
- Upward sloping
- Downward sloping
- Vertical
- Horizontal
-
What type of cross elasticity relationship exists between goods in joint demand?
- Negative XED
- Infinite XED
- Zero XED
- Positive XED
-
Which straight-line supply curve always has a price elasticity of supply equal to one?
- Passes through origin
- Crosses quantity axis
- Is perfectly vertical
- Crosses price axis
-
What type of cross elasticity value do goods in competitive demand possess?
- Zero XED
- Negative XED
- Infinite XED
- Positive XED
Related quizzes
- Specialisation, barter and money as a medium of exchange Quiz · 2.1.1 · 20 questions
- Demand, the demand curve and its shifts Quiz · 2.2.1 · 20 questions
- Supply, the supply curve and its shifts Quiz · 2.3.1 · 20 questions
- Consumer and producer surplus and price changes Quiz · 2.4.1 · 20 questions
- Demand, supply, equilibrium and disequilibrium Quiz · 2.5.1 · 20 questions
- Ceteris paribus and changes in related markets Quiz · 2.5.2 · 20 questions
- Price elasticity of demand and total revenue Quiz · 2.6.1 · 20 questions
- Determinants and usefulness of elasticity Quiz · 2.6.3 · 20 questions
- Marginal values, total and marginal utility Quiz · 2.7.1 · 20 questions
- Market failure and marginal social, private and external values Quiz · 2.8.1 · 20 questions