Question : The price elasticity of demand is calculated as the percentage change in:

Option 1: Price divided by the percentage change in quantity demanded

Option 2: Quantity demanded divided by the percentage change in price

Option 3: Quantity demanded divided by the percentage change in income

Option 4: Price divided by the percentage change in income

Question : The percentage change in _______ divided by the percentage change in _______ is the income elasticity of demand.

Option 1: The quantity demanded; income

Option 2: Income; the price

Option 3: Income; the quantity demanded.

Option 4: The price; income

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 : Assertion: Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Reason: Elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.

Question : The elasticity of demand for price is:

Option 1: Elasticity = Percentage change in demand/Percentage change in time

Option 2: Elasticity = Percentage change in price/Percentage change in demand

Option 3: Elasticity = Percentage change in demand/Percentage change in supply

Option 4: Elasticity = Percentage change in supply/Percentage change in price