Question : What is elasticty of demand in case of necessaties?
Option 1: Unlimited
Option 2: Zero
Option 3: Greater than unity
Option 4: Less than unity

Question

Question : The country can improve its balance of payments by devaluation when the sum of elasticity of demand for exports and imports is _____________.
Option 1: less than unity
Option 2: equal to unity
Option 3: greater than unity
Option 4: zero

8 Views

Answer 1

Correct Answer: Zero

Solution : The demand for necessities is typically inelastic.
The elasticity of demand for necessities is zero while luxury goods tend to be most elastic.
Hence B is the correct answer.

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Question : What is elasticty of demand in case of necessaties?Option 1: UnlimitedOption 2: ZeroOption 3: Greater than unityOption 4: Less than unity

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Question : What is elasticty of demand in case of necessaties?
Option 1: Unlimited
Option 2: Zero
Option 3: Greater than unity
Option 4: Less than unity

Question : The country can improve its balance of payments by devaluation when the sum of elasticity of demand for exports and imports is _____________.
Option 1: less than unity
Option 2: equal to unity
Option 3: greater than unity
Option 4: 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 for a good is said to be inelastic when the price elasticity of demand is:
Option 1: Less than 1
Option 2: Equal to 1
Option 3: Greater than 1
Option 4: Undefined

Question : Perfectly inelastic demand is equal to:
Option 1: one
Option 2: infinite
Option 3: zero
Option 4: greater than one

Question : The elasticity of demand for luxury goods is:
Option 1: Less than one
Option 2: More than one
Option 3: Zero
Option 4: Infinite