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Elasticity Of Demand Quiz 2 (25 MCQs)

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1. Result is positive and over 1

2. A price ceiling is characterized by

3. The price of a commodity is Rs 50 per unit and its quantity demanded is 500 units .Its price rises to Rs 60 per unit and quantity demand falls by 90 units. Calculate Ed

4. The supply of perishable good such as bananas is more price _____ than durable goods such as smart phones because of lack of _____ for perishable goods.

5. Why do firms need to know whether demand for its product is elastic or inelastic?

6. What would not affect the position of the demand curve for wigs?

7. What is the price elasticity of demand (PED) for a product for which a 10% price rise reduces sales volume by 5%?

8. A 10 percent decrease in income decreases the quantity demanded of scented candles by 3 percent. The income elasticity of demand for scented candles is:

9. A 10 percent increase in income has caused a 5 percent decrease in the quantity demanded. The income elasticity is

10. What type of elasticity would electricity have and why

11. Elasticity is another word for _____

12. Sales of Ice cream cones from a van are at there most elastic at what time of the year?

13. A 8% increase in income might lead to a 10% rise in the demand for new kitchens.

14. A good has unitary price elasticity of demand and at a price of $ 25 it sells 100 000 units. Which price must the firm charge if it wants to sell 125 000 units of the good?

15. Why is knowledge of price elasticity of demand useful?

16. Which of the following is not a determinant of the demand sensitivity to price changes?

17. If the price elasticity of supply of doodads is 0.60 and the price increases by 3 percent, then the quantity supplied of doodads will rise by

18. A consumer buys 5 units of a good at a price of Rs 4 per unit. When price falls to Rs 3 per unit he buys 10 units. Calculate Ed

19. The price of good X rises by 10%. As a result, the demand for a complementary good Y changes by 20%. What is the cross elasticity of demand for good Y with respect to good X?

20. When YED value is positive and the value is 0.5

21. A consumer buys 50 units of a good at a price of Rs 10 per unit. When the price falls to Rs 5 per unit he buys 100 units. Find out price elasticity by percentage method

22. The Price elasticity of milk is 1.4, therefore we can say that milk is _____

23. A good is considered relatively elastic when the elasticity of demand is

24. A product is likely to have a price elasticity of demand that exceeds 1 when:

25. Alyssa's Floral Shoppe dropped its prices for a dozen roses from $ 45 to $ 35 this year. Because of this decrease in price, the quantity sold increased from 1000 to 1500. The price elasticity of demand for Alyssa's roses is:

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Elasticity Of Demand Quiz 2 (25 MCQs)

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