Question : A manufacturer faces a -1.2 price elasticity of demand for its product. It is presently selling 7,500 units per day. If it wants to increase the quantity sold by 9%, it must lower its price by

Option 1: 7.5%

Option 2: 7.8%

Option 3: 10.2%

Option 4: 10%

Question : The elasticity of demand for price is:

Option 1: Elasticity = Percentage change in demand/Percentage change in time

Option 2: Elasticity = Percentage change in price/Percentage change in demand

Option 3: Elasticity = Percentage change in demand/Percentage change in supply

Option 4: Elasticity = Percentage change in supply/Percentage change in price

Question : If an article is sold at $\frac{9}{10}th$ of its usual selling price, 20% profit would be made on it. Find the profit percentage which would have been made on it on selling it at its usual selling price.

Option 1: 33.33%

Option 2: 25%

Option 3: 30%

Option 4: 20%

Question : If the price of an article decreases from Rs. 80 to Rs. 60, the quantity demanded increases from 600 to 750 units. Find the point elasticity of demand.

Option 1: -1

Option 2: 1

Option 3: -1.25

Option 4: 1.25

Question : If the demand curve is a racing cycle, D = 80200 - 13P, and the supply curve is S = 6200 + 12P, what is the equilibrium quantity?

Option 1: 2960 units

Option 2: 31220 units

Option 3: 8750 units

Option 4: 41720 units

Question : A demand curve, which is parallel to the horizontal axis, showing quantity, has a price elasticity equal to

Option 1: zero

Option 2: one

Option 3: less than one

Option 4: infinite