Question : Statement 1: The concept of price elasticity of demand measures the responsiveness of quantity demanded to changes in income.

Statement 2: Price elasticity of demand can be calculated by dividing the percentage change in quantity demanded by the percentage change in price.

Option 1: Statement 1 is true, and statement 2 is false.

Option 2: Statement 1 is false, and statement 2 is true.

Option 3: Both statement 1 and statement 2 are true.

Option 4: Both statement 1 and statement 2 are false.

Question : Statement 1: When the price of a product increases by 10%, and its quantity demanded decreases by 5%, the price elasticity of demand is - 0.5.

Statement 2: The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.

Question : Statement 1: Elasticity of demand measures the sensitivity of quantity demanded to changes in price.

Statement 2: If the percentage change in price is greater than the percentage change in quantity demanded, demand is considered elastic.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.

Question : Statement 1: The midpoint formula is used to calculate price elasticity of demand when price changes between two points on the demand curve.

Statement 2: The midpoint formula divides the percentage change in quantity demanded by the average percentage change in price.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.

Question : Statement 1: If the price elasticity of demand for a product is -1.5, a 10% increase in price will result in a 15% decrease in quantity demanded.

Statement 2: The absolute value of the price elasticity of demand represents the percentage change in quantity demanded for a 1% change in price.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.