Question : If the price elasticity of demand is less than one, then the demand for the goods is said to be ______.

Option 1: perfectly inelastic

Option 2: inelastic

Option 3: perfectly elastic

Option 4: unitary elastic

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

Question : In any economy, the income velocity of the hoarded money (idle) by the public is equal to ___________.

Option 1: one

Option 2: greater than one

Option 3: zero

Option 4: greater than zero

Question : Equilibrium price is the price when :

Option 1: Supply is greater than demand .

Option 2: Supply is less than demand .

Option 3: Demand  is very high .

Option 4: Supply is equal to demand.

Question : The demand curve facing a perfectly competitive firm:

Option 1: downward sloping 

Option 2: perfectly inelastic 

Option 3: a concave curve 

Option 4: perfectly elastic