AQA, Aquinas, Economics, ECON1, Markets, Market Failure

1. ECON1
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Price Elasticity of Demand
Answer all the questions below
1. Explain the term Price Elasticity
2. What is the calculation for Price Elasticity of Demand
3. Complete the table
Answer: Known as:
0
Between 0 and -1
1
Above 1
Infinite
4. Draw a graph to illustrate the following scenarios:
a. Relatively Inelastic PeD
b. Relatively elastic PeD
c. Perfectly elastic PeD
d. Perfectly inelastic PeD
5. For each of the graphs give an example of goods which could be considered
to have each of the elasticities
6. Explain the factors which determine Price Elasticity of Demand
7. Explain with reference the elasticity, how and why some firms can pass the
incidence of tax onto consumers