Practice Price Elasticity Of Demand (ped) (6.1) - Microeconomics - IB 10 Individuals & Societies

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6 sample questions

Question 1.
Define Price Elasticity of Demand.
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Think about how consumers react to price changes.
Question 2.
What is elastic demand?
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Remember the flexibility of the demand?
3Question 3.
What does the Price Elasticity of Demand measure?
- a) Change in supply with price
- b) How quantity demanded changes with price
- c) Profit margins
- d) Consumer income level
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Look for what deals with demand and price.
4Question 4.
If demand for a product is inelastic, what happens when the price increases?
- True
- False
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Think about necessities.
Question 5.
Suppose a luxury handbag's price increases by 20%, leading to a 30% drop in sales. Calculate the Price Elasticity of Demand and explain its significance.
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Consider the formula for PED.
Question 6.
A pharmaceutical product is essential for many consumers. If it increases in price, predict the reaction of consumers over the short and long term, and explain the reasoning.
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Think about the difference in consumer behavior over time.

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