Economics Aqa A level Paper 1
test questions with complete
answers.
increase in demand - Answer a rightward shift of the demand curve
decrease in demand - Answer a leftward shift of the demand curve
Normal good - Answer a good for which the demand increases as
income rises and decreases as income falls
, Inferior good - Answer A good for which demand decreases as income
rises and demand increases as income falls. For example as income
rises demand for bud travel falls as more people can afford cars.
Elasticity - Answer The proportionate responsiveness of a second
variable to an initial change in the first variable.
price elasticity of demand - Answer The responsiveness of the quantity
demanded of a good to a change in price.
Percentage change formula - Answer change/original x 100
Income elasticity of demand (YED) - Answer The responsiveness of
demand for a good to change in consumers real income.
Cross Elasticity of Demand (XED) - Answer The responsiveness of the
demand for a product following a change in price in another product.
Price elasticity of demand formula - Answer % change in quantity
demanded / % change in price
Income elasticity of demand formula - Answer % change in quantity
demanded / % change in income
positive statement - Answer An objective statement that can be tested
against facts to be declared either true or false.
test questions with complete
answers.
increase in demand - Answer a rightward shift of the demand curve
decrease in demand - Answer a leftward shift of the demand curve
Normal good - Answer a good for which the demand increases as
income rises and decreases as income falls
, Inferior good - Answer A good for which demand decreases as income
rises and demand increases as income falls. For example as income
rises demand for bud travel falls as more people can afford cars.
Elasticity - Answer The proportionate responsiveness of a second
variable to an initial change in the first variable.
price elasticity of demand - Answer The responsiveness of the quantity
demanded of a good to a change in price.
Percentage change formula - Answer change/original x 100
Income elasticity of demand (YED) - Answer The responsiveness of
demand for a good to change in consumers real income.
Cross Elasticity of Demand (XED) - Answer The responsiveness of the
demand for a product following a change in price in another product.
Price elasticity of demand formula - Answer % change in quantity
demanded / % change in price
Income elasticity of demand formula - Answer % change in quantity
demanded / % change in income
positive statement - Answer An objective statement that can be tested
against facts to be declared either true or false.
