Question : When the demanded quantity of a commodity does not respond to price changes, the demand for that commodity is?

Option 1: Elastic

Option 2: Inelastic

Option 3: Perfectly inelastic

Option 4: Unit elastic

Question : When the demanded quantity of a commodity does not respond to price changes, the demand for that commodity is ____?

Option 1: Perfectly inelastic

Option 2: Inelastic

Option 3: Unit elastic

Option 4: Elastic

Question : The law of demand states that:

Option 1: if the price of a good increases, the demand for that good decreases

Option 2: if the price of a good increases, the demand for that good increases

Option 3: if the price of a good increases, the quantity demanded of that good decreases

Option 4: if the price of a good increases, the quantity demanded of that good increases

Question : If the price elasticity of demand for a good is 1.2, then a 10% decrease in price will result in a:

Option 1: 1.2% increase in quantity demanded.

Option 2: 12% increase in quantity demanded.

Option 3: 1.2% decrease in quantity demanded.

Option 4: 12% decrease in quantity demanded.

Question : If the price elasticity of demand for a good is 0.8, then a 10% increase in price will result in a:

Option 1: 0.8% increase in quantity demanded.

Option 2: 8% increase in quantity demanded.

Option 3: 0.8% decrease in quantity demanded.

Option 4: 8% decrease in quantity demanded.