Question 1
A 10% rise in the price of cinema tickets causes quantity demanded to fall by 15%. What is the price elasticity of demand (PED)?
Correct Answer:
-1.5, elastic
Question 2
A firm sells a product with price elasticity of demand of -0.4. If it raises price by 5%, what happens to total revenue?
Correct Answer:
Rises by approximately 3%
Question 3
Income elasticity of demand (YED) for own-brand supermarket bread is calculated to be -0.6. What does this indicate?
Correct Answer:
An inferior good
Question 4
Cross elasticity of demand (XED) between Pepsi and Coca-Cola is most likely to be:
Correct Answer:
Large and positive
Question 5
Which factor would make the supply of North Sea oil more price inelastic in the short run?
Correct Answer:
Long lead-times to drill new wells
Question 1
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About this Exam

Prepare with the A-Level Economics Practice Questions - A-Level Economics Exam practice quiz. This question bank includes 100 questions covering price, demand, bank, equilibrium, and output. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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A-Level Economics Practice Questions - A-Level Economics Exam

This practice set contains 100 questions from the matching question bank and focuses on price, demand, bank, equilibrium, and output. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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