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Elasticity Of Demand Quiz 6 (25 MCQs)

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1. In which situation is the demand for a product said to be price elastic?
2. Question 10The demand for food is most elastic in countries _____
3. PED is-1.5 and the firm raises price by 4%. What happens to total revenue?
4. A consumer spends Rs 250 on a good when its price is Rs 5 per unit. When the price rises to Rs 6 per unit he spends Rs 240 .Calculate Rs Ed
5. The income elasticity of demand for a normal good is always what?
6. A good has a unitary price elasticity of demand and at a price of $ 20 a firm sells 40 000 units.How many will the firm sell if it charges a price of $ 5?
7. How many categories of YED exits?
8. The formula for price elasticity of demand is _____
9. Wheat has seen a decrease in demand of 5%, while the price has increased 7%. The PED is:
10. The price elasticity of demand generally tends to be:
11. Assume a pizza costs $ 10. When the price increases to $ 12, demand falls 10%. What is the own-price elasticity of demand? Note:in economics, elasticity is generally reported as a positive number even when it is negative.
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. What is the YED?
13. The formula for the price elasticity of demand uses which of the following in the denominator?
14. To determine elasticity of demand economist use a _____
15. A price cut from $ 2 to $ 1.50 causes the demand for peas to rise from 10.000 units to 11.500 units. What is the price elasticity of demand for peas?
16. Electricity has seen a decrease in demand of 14%, while the price has increased 18%
17. Describe your demand for medicine if you buy the same amount of it after a large price increase.
18. If a rise in the price of good 1 decreases the quantity of good 2 demanded,
19. The cross-elasticity of demand for good X with respect to good Y is-0.5.What can be concluded from this?
20. If the price elasticity of supply is 0.2, and a price increase led to a 3% increase in quantity supplied, then the price increase is about
21. Price elasticity of demand is (-)2.The consumer buys certain quantity of this good at a price of Rs 10.When the price falls he buys 40 percent more quantity .What is the new price?
22. A given percentage change in price leads to an equal percentage change in quantity demanded. (Equal to 1)
23. Of the following, which one is most likely to have a negative income elasticity of demand?
24. The price of ice cream increased from $ 2.00 to $ 2.20 and the quantity demanded decreased from 10 to 8 units per hour. Note:in economics, elasticity is generally reported as a positive number even when it is negative. Use the midpoint formula.
25. The income elasticity is +2 and income increases by 20%. Sales were 5000 units, what will they be now?
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