Question : Statement 1: Price elasticity of demand can have a value of zero for a perfectly inelastic demand curve.

Statement 2: Perfectly inelastic demand implies that quantity demanded does not change regardless of price changes.

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.

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: If the price elasticity of demand for a product is -0.2, demand is considered inelastic.

Statement 2: Inelastic demand implies that a change in price leads to a proportionately smaller change in quantity demanded.

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: Demand for a product is perfectly elastic when quantity demanded becomes infinite at a specific price.

Statement 2: Perfectly elastic demand implies that any increase in price will cause quantity demanded to drop to zero.

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.