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Elasticity Of Demand Quiz 4 (25 MCQs)

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1. The elasticity of supply measures the responsiveness of
2. A per unit tax on a good or service like a tax on gasoline.
3. A cut in price from $ 75 to $ 60 sees demand for a product rise by from 1, 200 units to 1, 500 units. What would the price elasticity of demand be for this product?
4. In the long run price elasticity of demand generally does what for normal goods
5. If the income elasticity is 0.6 and income increases by 10%, what would the demand increasse by?
6. A consumer buys 100 units of good X at rs 5 per unit. The elasticity is (-)2. At what price will he be willing to buy 140 units of good X?
7. Result is positive and under 1
8. When will demand for Inferior goods rise?
9. The medication known as insulin has seen a decrease in demand of 2%, while the price has increased 10%
10. Some factors that affect price elasticity are _____
11. Which of the following products would likely have an inelastic demand?
12. A company sells solar batteries. Last year income rose by 2% as a result demand increased from 1.6million units to 1.8 million. The product is a/an _____ product
13. If Total Revenue does not change when Price changes
14. What word describes demand as been very sensitive to a change in price?
15. The elasticity of demand for tissues is less than 1. This means the demand for tissues is
16. To determine whether two goods are substitutes or complements, an economist would estimate the
17. A PED value greater than 1 means _____
18. What can we interpret about price elasticity of demand when the percentage change in quantity demanded is equivalent to the percentage change in price?
19. Since the elasticity of demand is downward sloping the elasticity should always be negative.
20. % Change in Quantity Demanded of Product C / % Change in Quantity Demanded of Product X.The above equation gives rise to:
21. What is the formula for YED?
22. The income elasticity of demand is a measure of the:
23. Which of the following is NOT an inelastic demand for a product?
24. If P = £10 for Tiny Tee-shirts, Q = 20, but if P falls to £5, Q demanded increase to 25. The price elasticity of demand for Tiny Tee-shirts is:
25. When price of a good is RS 13 per unit the consumer buys 11 units of that good .when price rises to Rs 15 per unit, the consumer continues to buy 11 units. Calculate price elasticity of demand.
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