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ELASTICITY OF DEMAND FOR 12TH ICSE BOARD, MCQS ECONOMICS, ELASTICITY OF DEMAND Objective questions for +2 ICSE Board, +2 ICSE MCQ FOR ECONOMICS , ELASTICITY OF DEMAND FOR Mock Test for 12th Class ICSE Board.
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: ELASTICITY OF DEMAND MCQ CLASS 12
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: ELASTICITY OF DEMAND MCQ CLASS 12
Table of Contents
ELASTICITY OF DEMAND MCQ CLASS 12
1-Elasticity is the measure of ___ .
(A) responsiveness
(B) change
(C) price
(D) need
2-A good or service is considered to be elastic if a slight change in price leads to ___ change in the quantity demanded or supplied.
(A) only modest
(B) no
(C) a sharp
(D) any of the above
3-An inelastic good or service is one in which changes in price witness ___ changes in the quantity demanded or supplied
(A) only modest
(B) no
(C) a sharp
(D) any of the above
4-The law of demand tells us that consumers will respond to a price decline by buying ___ of a product.
(A) less
(B) more
(C) substitute
(D) none of the above
5-The total revenues of the firm will equal the
(A) price changed x quantity sold
(B) price changed + quantity sold
(C) price changed / quantity sold
(D) quantity sold / price changed
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6-All such demand curves where quantity demanded is totally unresponsive to changes in price are called
(A) perfectly elastic demand curve
(B) perfectly inelastic demand curve
(C) Unitary elastic demand curve
(D) none of the above
7- Such horizontal demand curves, where quantity demanded is infinitely responsive to price changes, are called
(A) perfectly elastic demand curve
(B) perfectly inelastic demand curve
(C) Unitary elastic demand curve
(D) none of the above
8-The ___ have a property that when price decreases total revenue increases, and vice-versa.
(A) perfectly elastic demand curve
(B) perfectly inelastic demand curve
(C) Unitary elastic demand curve
(D) none of the above
9-The elasticity coefficient for perfectly elastic demand curve is
(A) zero
(B) one
(C) infinity
(D) none of the above
10-Demand curve is said to be ___ and has the property that when price increases or decreases, the total revenue remains constant.
(A) perfectly elastic
(B) perfectly inelastic
(C) unitary elastic
(D) none of the above
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11-The elasticity coefficient for unitary demand curves is equal to
(A) zero
(B) one
(C) infinity
(D) none of the above
12-Demand curves which have an elasticity coefficient __ are called relatively inelastic or simply inelastic.
(A) 0
(B) 1
(C) between 0 and 1
(D) infinity
13-The elasticity coefficient for a relatively elastic or simply elastic demand curve, is
(A) 0
(B) 1
(C) between 0 and 1
(D) between 1 and infinity
14-In the real world, ___ per cent of the demand curves are either relatively elastic or relatively inelastic.
(A) 69.99
(B) 79.99
(C) 89.99
(D) 99.99
15-Elasticity can be measured by
(A) Geometrical Method
(B) Arithmetical Method
(C) Both (A) and (B)
(D) None of the above
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16-Luxury goods tend to have an
(A) elastic demand
(B) inelastic demand
(C) unitary demand
(D) none of the above
17- Necessity goods tend to have an
(A) elastic demand
(B) inelastic demand
(C) unitary demand
(D) none of the above
18- The cross elasticity of demand is a numerical measure of the degree to which quantity demanded of a good responds to changes in the ___, the other determinants of demand being kept constant.
(A) prices of other commodities
(B) income
(C) price
(D) none of the above
19- An understanding of elasticity is fundamental in understanding the ___ in a market.
(A) response of supply
(B) demand
(C) both (A) and (B)
(D) none of the above
20- The arc elasticity is a measure of
(A) minimum elasticity
(B) maximum elasticity
(C) average elasticity
(D) all of the above
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21- In case of a straight-line demand curve meeting the two axes, the price- elasticity of demand at the midpoint of the line would be:
(A) 0
(B) 1
(C) 1.5
(D) 2
22- Identify the factor which generally keeps the price elasticity of demand for a good low:
(A) Variety of uses for that good.
(B) Its low price.
(C) Close substitutes for that good.
(D) High proportion of the consumer’s income spent on it.
23- Identify the coefficient of price elasticity of demand when the percentage increase in the quantity of good demanded is smaller than the percentage fall in its price:
(A) Equal to one.
(B) Greater than one.
(C) Smaller than one. (d) Zero.
24- If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
(A) remain the same,
(B) increase.
(C) decrease.
(D) Any of these.
25- Which one of the following four possibilities, results in an increase in total consumer expenditure?
(A) Demand is unitary elastic and price falls.
(B) Demand is elastic and price rises.
(C) Demand is inelastic and price falls.
(D) Demand is inelastic and price rises.
26- The price elasticity of demand for hamburger is:
(A) the change in the quantity demanded of hamburger when the hamburger increases by 30 paise per rupee.
(B) the percentage increase in the quantity demanded of hamburger when the price of hamburger falls by 1 per cent per rupee.
(C) the increase in the demand for hamburger when the price of hamburger falls by 10 per cent per rupee.
(D) the decrease in the quantity demanded of hamburger when the price of hamburger falls by 1 per cent per rupee.
27- The price elasticity of demand is defined as the responsiveness of:
(A) price to a change in quantity demanded.
(B) quantity demanded to a change in price.
(C) price to a change in income.
(D) quantity demanded to a change in income.
28- A decrease in price will result in an increase in total revenue if:
(A) the percentage change in quantity demanded is less than the percentage change in price.
(B) the percentage change in quantity demanded is greater than the percentage change in price.
(C) demand is inelastic.
(D) the consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high.
29. An increase in price will result in an increase in total revenue if:
(A) The percentage change in quantity demanded is less than the percentage change in price.
(B) The percentage change in quantity demanded is greater than the percentage change in price.
(C) Demand is elastic.
(D) The consumer is operating along a linear demand curve at a point at which the price is very high and the quantity demanded is very low.
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ANSWER KEY
| A | 11. B | 21. B |
| C | 12. C | 22. B |
| A | 13. D | 23. C |
| B | 14. D | 24. B |
| A | 15. C | 25. D |
| B | 16. A | 26. B |
| A | 17. B | 27.B |
| A | 18. A | 28. B |
| C | 19. C | 29. A |
| C | 20. C |
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ALSO VISIT:MCQ ON CONSUMER BEHAVIOR WITH ANSWERS