1.2 Elasticity

Examine the significance of price elasticity of demand for the decision making of firms and government.

Explain two determinants of the price elasticity of demand (PED).

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

Explain why price elasticity of demand varies along the length of a straight-line demand curve.

Examine the significance of price elasticity of demand for the decision-making of firms and governments. 

Discuss the significance of price elasticity of demand (PED) for a government imposing an indirect tax on a good.

Explain how knowledge of price elasticity of demand could be used by a firm that is considering changing the price of its product.

Explain why the price elasticity of demand for primary commodities is often relatively low while the price elasticity of demand for manufactured goods is often relatively high.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Discuss the significance of price elasticity of demand (PED) for a government imposing an indirect tax on a good.

Discuss the significance of price elasticity of demand (PED) for a government imposing an indirect tax on a good.

Explain how knowledge of price elasticity of demand could be used by a firm that is considering changing the price of its product.

Explain how knowledge of price elasticity of demand could be used by a firm that is considering changing the price of its product.

Explain why the price elasticity of demand for primary commodities is often relatively low while the price elasticity of demand for manufactured goods is often relatively high.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Explain why the price elasticity of demand for primary commodities is often relatively low while the price elasticity of demand for manufactured goods is often relatively high.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Examine the significance of price elasticity of demand for the decision making of firms and government.

Examine the significance of price elasticity of demand for the decision making of firms and government.

Explain two determinants of the price elasticity of demand (PED).

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

Explain two determinants of the price elasticity of demand (PED).

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

Explain why price elasticity of demand varies along the length of a straight-line demand curve.

Examine the significance of price elasticity of demand for the decision-making of firms and governments. 

Explain why price elasticity of demand varies along the length of a straight-line demand curve.

Examine the significance of price elasticity of demand for the decision-making of firms and governments. 

Explain how the value of the cross price elasticity of demand (XED) for a particular good is determined by its relationship to other goods.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Widgets and Pidgets have negative cross price elasticity of demand (XED).
Explain how the demand function for Widgets, Qd = 249 − 4P, is likely to change as a result of an increase in the price of Pidgets.

Evaluate the importance of cross price elasticity of demand for a business selling a good if the price of a related good increases.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

Evaluate the importance of cross price elasticity of demand for a business selling a good if the price of a related good increases.

Evaluate the importance of cross price elasticity of demand for a business selling a good if the price of a related good increases.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

Explain how the value of the cross price elasticity of demand (XED) for a particular good is determined by its relationship to other goods.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Explain how the value of the cross price elasticity of demand (XED) for a particular good is determined by its relationship to other goods.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Widgets and Pidgets have negative cross price elasticity of demand (XED).
Explain how the demand function for Widgets, Qd = 249 − 4P, is likely to change as a result of an increase in the price of Pidgets.

Widgets and Pidgets have negative cross price elasticity of demand (XED).
Explain how the demand function for Widgets, Qd = 249 − 4P, is likely to change as a result of an increase in the price of Pidgets.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Country D is an economically less developed country that specializes in the production of primary products. 

Explain two implications for Country D of a relatively low income elasticity of demand for its primary products.

Good A and Good B are in joint supply.

Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.

Country D is an economically less developed country that specializes in the production of primary products. 

Explain two implications for Country D of a relatively low income elasticity of demand for its primary products.

Good A and Good B are in joint supply.

Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.

Country D is an economically less developed country that specializes in the production of primary products. 

Explain two implications for Country D of a relatively low income elasticity of demand for its primary products.

Good A and Good B are in joint supply.

Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

The time taken to produce goods is an important determinant of the price elasticity of supply.

Apart from time, explain two factors which influence the price elasticity of supply.

The time taken to produce goods is an important determinant of the price elasticity of supply.

Apart from time, explain two factors which influence the price elasticity of supply.

The time taken to produce goods is an important determinant of the price elasticity of supply.

Apart from time, explain two factors which influence the price elasticity of supply.