Revision game for 5th | Baamboozle - Baamboozle | The Most Fun Classroom Games!

What does price elasticity of demand measure?

It measures the change in the quantity demanded of one good in response to the change in the price of the same good.

Which is the price elasticity of demand´s formula?

% change in demand / % change in price

Explain why the curve of inelastic demand is vertical

The curve is vertical because if the producers increase or decrease their prices, people would not react at all to price changes.

Which of the following diagrams represent a unitary elastic demand?

C.

Complete the following: If PED is = -∞ it is.. It is perfectly inelastic whe….. If it is = -1 it is ……...

Perfectly elastic. it is = 0 Unitary elastic.

In the diagram, where can the equilibrium point can be found?

In the diagram the equilibrium point is the point where the demand curve and the supply curve cross each other.

The demand for comfy clothes has increased, the factor affecting this is quarantine. It has increased because people are locked in their house so they want to be comfortable. Explain what happens with the equilibrium price and quantity

This causes the equilibrium price to rise, so the equilibrium quantity will be higher.

When does market equilibrium occur? Explain.

Market equilibrium occurs when the willingness to buy the product matches the willingness to sell the product. The market will be stable and there will not be

The following factors can affect the supply curve, give an example for it: Weather condition. subsides.

Extreme stormy days or something like that where workers cant go to work, so they cant produce. The government gives the guitar company a subsidy.

Mark it, it's true or false, it's false, correct it. If the price of wood for pianos increases, the line will shift to the right and there is an increase in the supply.

F If the price of wood for pianos increases, the line will shift to the left and there is a decrease in the supply.

Quantity demanded and price are inversely related. True or false?

True

It is summer, what do you think will happen to the demand for sunscreen and why?

As in summer people are more exposed to the sun and they want to be protected from it, the demand for sunscreen will rise.

The demand curve is a graphical representation of the relationship between ….. and the…… for a given period of time. Higher prices lead to a …...of quantity demanded and lower prices lead to an…… of quantity demanded.

The price of a good. Quantity demanded. Contraction. Expansion.

Name one advantage and one disadvantage of market economy

Advantage: Lack of bureaucracy. Disadvantage: Abuse of market power

Match the characteristics with the corresponding economic system. -both, the private and public sectors play a key role. -government makes most of the decisions on how resources are allocated. -resources are allocated using both the price

.

What type of economic system this picture refers to? Give 2 characteristics of that economic system.

This picture refers to a command economy. Characteristics: the economy it's directed by the government. All factors of production are state owned and controll

Is a point inside the curve efficient or inefficient? Explain why.

Any point inside the curve is inefficient because more of the good could be produced.

When the production possibility curve shifts to the right, it is increasing because the resources used to produce certain goods improves. True or false?

True.

How much is the opportunity cost moving from point A to B?

The opportunity cost is 250 moving from point A to point B.

Which are the factors of production?

Land, labour, enterprise and capital.

Which factor of production is defined by this definition? ¨Any natural resources available for productions. e.g: eggs.¨

Land

The main economic problem is called……. Which means…………..

Scarcity. A situation in which wants and needs are in excess of the resources available.