Question : If the price changes by 1% while the supply changes by 2%, the supply is:-
Option 1: Elastic
Option 2: Static
Option 3: Indeterminate
Option 4: Inelastic
Correct Answer: Elastic
Solution : A price elasticity supply greater than one indicates that supply is relatively elastic, meaning that the quantity supplied changes by a greater percentage than the price change. Hence option a is the correct answer.
Question : If the price elasticity of demand for a good is greater than 1, the demand is:
Option 1: Elastic.
Option 2: Inelastic.
Option 3: Unit elastic.
Option 4: Perfectly inelastic.
Question : Whats is elasticty of luxury goods demand?
Option 1: Inelastic
Option 2: Elastic
Option 3: Highly elastic
Option 4: Perfectly Inelastic
Question : When the demanded quantity of a commodity does not respond to price changes, the demand for that commodity is?
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 3: Unit elastic
Option 4: Elastic
Question : If the price elasticity of demand for a good is less than 1, the demand is:
Option 4: Perfectly elastic.
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