21st Oct Elasticity of Demand Quiz 1 – Punjab Meritorious School Preparation Portal

Welcome to your 21st Oct Elasticity of Demand Quiz 1 CBT TEST

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Price elasticity of demand is best defined as:

Change in the tastes of consumers at different prices.

Change in demand when income of the consumer increases.

The rate of response of demand to a change in price.

The rate of response of demand to change in price of related goods.

If there is no change in demand for commodity 'X, even after rise in its price, then its demand is;

Perfectly Elastic

Perfectly Inelastic

Less Elastic

Highly Elastic

Which one of the following statements is incorrect:

Higher numerical value of elasticity indicates larger effect of a price change on the quantity demanded

Elasticity of demand can vary only between-1 and +1.

The demand curves for all commodities which have unitary elastic demand will be rectangular hyperbola

Elasticity of demand establishes a qualitative relationship between quantity demanded of a commodity and its price, while other factors remain constant.

If the price elasticity of demand for a commodity is less than unity, a decrease in price would result in:

Proportionately less increase in the quantity demanded.

Proportionately more increase in the quantity demanded.

Increase in total expenditure on the product

None of these

The elasticity of demand for a product will not be higher:

When it is considered a necessity by its buyers.

When less substitutes for the product are available.

When it has several uses.

When it is an expensive commodity.

Demand for a good is less elastic when:

Percentage change in price > Percentage change in quantity demanded

Percentage change in quantity demanded > Percentage change in price

Percentage change in price = Percentage change in quantity demanded

Demand curve is steeper

Which of the following will have elastic demand?

Matchbox

Coke

Medicines

Air Conditioners

Which of the following influence price elasticity of demand?

Nature of the commodity

Income Level

Availability of substitutes

All of these

A negative sign with coefficient of price elasticity of demand denotes:

Direct relation between price and quantity demanded

Inverse relation between price and quantity demanded

No relation between price and quantity demanded

None of these1

If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand is:

> 1

= 1

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