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Elasticity Of Demand Quiz 10 (25 MCQs)

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1. Question 9A fall in the price of X from RM12 to RM8 causes an increase in the quantity of Y demanded from 900 to 1, 100 units.What is the cross elasticity of demand between X and Y?
2. A week's holiday to New York
3. The cross elasticity of demand between Coca-Cola and Pepsi is
4. Which of the following would make a product more price elastic?
5. If a good has only a few substitutes and these substitutes are not close to the good, the PED for the good is likely to be
6. The Price elasticity of Bread is 1, therefore we can say that bread is _____
7. A hawker finds that when he increases his price for fish balls, his revenue decreases. The demand for his fish balls is therefore
8. Goods tend to have a more _____ demand over a longer period of time.
9. If the price of Kellogg's Corn Flakes goes up from £1.89 to £2.05 and quantity demanded changes from 250 to 210, then the price elasticity of demand would be:
10. Question 4Amy advertises to sell cookies for RM4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to RM6 a dozen and sells 40 dozen.What is Amy's elasticity of demand?
11. In which of the following cases would a firm's total revenue increase?
12. If a 10% change in price leads to a 30% change in the quantity demanded, then what is the elasticity?
13. Why would demand for salt be considered inelastic?
14. .If demand is price elastic, then:
15. Demand for a product is likely to be price inelastic the _____
16. Price X Quantity =
17. Water has seen an increase in demand 8% this summer, while the price has decreased 12%. The PED is:
18. If price rises and total revenue stays the same the demand is
19. When is the price elasticity of demand for a good likely to be greater than one?
20. Question 6Ali's income has just risen from RM940 per week to RM1, 060 per week. As a result, he decides to purchase 9 percent more steak per week.The income elasticity of Ali's demand for steak is?
21. Gasoline is inelastic on the short and the long run because _____
22. The price of Good X rises by 20%. As a result, the demand for a substitute Good Y rises by 10%.What is the cross-elasticity of demand for Good Y with respect to Good X?
23. A product has a price elasticity of demand that is greater than one. What will happen to total revenue if the price of the product is reduced by 3%?
24. When Elasticity is higher than 1, this is _____
25. Supermarket branded Baked Beans
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