Question : Elasticity (e) expressed by the formula 1 > e > 0 is

Option 1: Perfectly elastic

Option 2: Relatively elastic

Option 3: Perfectly inelastic

Option 4: Relatively inelastic

Question : The elasticity of demand is the degree of responsiveness of demand for a commodity to a ___________.

Option 1: Change in consumer's wealth

Option 2: Change in the price of substitutes

Option 3: Change in consumer's taste

Option 4: Change  its price

Question : In the situation of a liquidity trap, the speculative money demand function becomes ________.

Option 1: unitary elastic

Option 2: infinitely elastic

Option 3: inelastic

Option 4: zero

Question : The law of demand states that when _____.

Option 1: income and price rise demand rises

Option 2: income rises demand rises

Option 3: price rises demand rises

Option 4: price falls demand rises

Question : Directions: The prices of five cars B, M, J, N, and U are compared. The price of J is less than U, M, and N. The price of B is the lowest. No two cars have the same price. The price of U is less than M. The price of neither U nor M is the highest. The price of how many cars is less than the price of M?

Option 1: 3

Option 2: 2

Option 3: 4

Option 4: 1