F5 Quiz

1. List five factors that influence price.

2. Explain the following: (a) Price elasticity of demand

(b) Price inelasticity of demand

(c) How is price elasticity of demand calculated?

3. What are factors that would influence demand? Give four.

4. Using the demand equation, solve the following:

The current price of a product is $30 and the producers sell 100 items a week at this price. One week the price is dropped by $3 as a special offer and the producers sell 150 items. Find an expression for the demand curve.

The demand equation is P = a - bQ