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Elasticity Of Demand Quiz 8 (25 MCQs)

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1. A product has perfectly inelastic price elasticity of demand. What will happen to total revenue if the price of the product rises by 10%?
2. Which of the following scenarios would indicate inelastic demand with respect to price?
3. When the quantity demanded changes by a smaller percentage than the price, demand is said to be
4. An increase in Azad's income decreases her demand for cassette tapes. For her, cassette tapes are
5. Question 5A cut in price of Product A from RM1.50 to RM1.20 sees demand for a product rise by 10%. What would the price elasticity of demand be for this product?
6. If price elasticity of demand coefficient ratio is 3, demand is
7. A consumer buys 10 units of good x at a price of Rs 5 per unit. The price elasticity of demand for this demand for this good is 2 . Price falls to Rs 4 per unit. How many units of good X will he now buy at this price?
8. Suppose there is a 6% increase in the price of good X and a resulting 6% decrease in the quantity of X demanded. Price elasticity of demand for X is
9. A businessman had intended to borrow $ 5000 at 8 % per year for house purchase. When the interest rate rose to 10% he decided to borrow only $ 4000.Within what range is his interest elasticity of demand for loans?
10. When the percentage change in the quantity demanded is greater than the percentage change in price, demand is said to be
11. If price rises and total revenue falls then demand is
12. The market for goldfish is competitive. From year 1 to year 2, both the price and the quantity of goldfish increase. This is most likely caused by:
13. The elasticity on a item such as gas is:
14. Which of the following is most likely to have a negative income elasticity of demand?
15. Public transport has an income elasticity of demand of-0.36. What does this mean about public transport?
16. The formula to calculate producer revenue is
17. The price elasticity of demand for good X is 1. At a price of $ 12, quantity demanded is 4000 units.What will be the price when the quantity demanded is 20.000 units?
18. If you have plenty of choice, and substitutes, the demand curve is
19. What is the relationship between two good if Ex =-2
20. It has been estimated that bread has an income elasticity of-0.04. What can be concluded about bread from this information?
21. Which of these is most likely to quickly become available in larger quantities as a result of a price increase?
22. If the cross price elasticity between 2 goods is positive, what is the relationship between these 2 goods?
23. When a factory is running at full capacity, it means all its machinery is _____ utilised and the supply of the good will be price _____
24. What might shift an individual's demand curve for petrol to the left?
25. Which of the following would make a good more price inelastic?
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