Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. taxi ridesD. Choose the one alternative that best completes the statement or answers the question. luxuries. Less than 1 b. inelastic throughout. Elasticity of demand is of three types – price, income and cross. Extra Multiple Choice Questions for Review 1. That quantity demanded is insensitive to changes in the price of that goodD. complementsC. none of these answers. 30%: C. 3: D. 1?3: View Answer Workspace Report Discuss in Forum. none of theseD. 2. Give it a try and get to prepare for the microeconomics exam that is coming up. .16 C. 2.5 D. 4.0 2. 2. the quantity supplied is incentive to changes in the price of that goodE. A 3 percent increase in the price of tea causes a 6 percent increase in the demand for coffee. Which of the following would cause a demand curve for a good to be price inelastic ? The Mcqs having specific numbers in any written test. Multiple Choice Questions1. C) the price elasticity of demand is 2.25. Keep paper and pencil ready but keep your books away.These tests are unlimited in nature...take as many as you like. in general a flatter demand curve is more likely to be ? Enter your email address to subscribe to this blog and receive notifications of new posts by email. 1.00. C) inferior. b) 6. c) 2 d) 3. This contains 30 Multiple Choice Questions for CA Foundation Test: Theory Of Supply (mcq) to study with solutions a complete question bank. -0.5 b. These Demand and Supply Multiple Choice Questions with Answers are important for competitive exams UGC NET, GATE, IBPS Specialist Recruitment Test. Professionals, Teachers, Students and Kids Trivia Quizzes to test your knowledge on the subject. supply is price elasticD. 3. Test your understanding of elasticity of demand and supply with these revision MCQs. Answers to Theory of Demand MCQ are available at the end of the last question. income inelasticC. MULTIPLE CHOICE QUESTIONS. unit price elastic. Economics – Chapter 4 – Elasticity of demand multiple choice questions Subject: Economics / General Economics Question Chapter 4 – Elasticity – Sample Questions MULTIPLE CHOICE. By practicing these MCQs of Elasticity Mcqs ( Economics ) MCQs – Latest Competitive Medical MCQs , an individual for exams performs better than before. less than 1D. There are a great number of substitutes for the goodC. 3.00. 1.5% C. 5% D. 15% 3. Thanks, you will receive a call between 10:00am - 7:00pm IST. If elasticity of demand is very low it shows that the commodity is: A. 1. A. increase total revenue to farmers as a whole because the demand for food is elastic B. increase total revenue to farmers as whole because the demand for food is inelastic C. reduce total revenue to farmers as a whole because the demand for food is elastic D. reduce total revenue to farmers as a whole because the demand for food is inelastic 25. Below is a microeconomics quiz on flexibility & its application in the economy. It is therefore practice these mcqs of Economics to approach the success. 1. B) the change in the quantity of apples demanded divided by the change in the quantity of oranges demanded. 12) 13)The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a _____ decrease in the quantity demanded. If the price elasticity of demand for a good is .75, the demand for the good can be described as: A) normal. 3. b) 6/10. 10%: B. none of theseE. Practice for BBA or MBA exams using these MCQ. A. demand would tend to be price elasticB. the quantity demanded is sensitive to changes in the price of that goodC. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ? Overall you need 80% … If an increase in the price of a good has no impact on the total revenue in that market demand must be ? Solution: Price of a product falls by 10% and its demand rises by 30%. It is therefore everyone have to learn / remember the related Elasticity Mcqs ( Economics ) Mcqs. Elasticity of Demand – CBSE Notes for Class 12 Micro Economics. viewed only after completing the test. The good is luxury, A. price elasticB. A necessity: B. 1.15B. greater than 1. In this range of prices, demand for this product is: bus ticketsC. 7. The elasticity of demand is. reduce total revenue to farmers as a whole because the demand for food is inelastic. A. demand is price inelasticB. 50% B. A. As wise people believe “Perfect Practice make a Man Perfect”. A. increase total revenue to farmers as whole because the demand for food is inelasticB. Complete MCQs - Elasticity of Demand Commerce Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check out Commerce lecture & lessons summary in the same course for Commerce Syllabus. MCQ quiz on Demand and Supply multiple choice questions and answers on Demand and Supply MCQ questions quiz on Demand and Supply objectives questions with answer test pdf. the units used The good is an inferior goodB. A. unit price elasticB. C. 30%. B) A is a complementary good. Here is a revision video version of our popular Edge MCQ Blast format - this time looking at ten questions covering aspects of elasticity of demand and supply. The demand for which of the following is likely to be the most price inelastic ? Demand Quiz Demand Quiz . Elasticity PAPER – 4 Access the above question papers link which contain MCQs (Multiple choice questions) on Elasticity. B) elastic. Suppose that a 2% increase in price results in a 6% decrease in quantity demanded. A decrease in supply (shift to the left) will increase total revenue in that market if ? Demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables, such as the prices and consumer income. The good is a necessityD. For example if a 10% increase in the price of a good leads to a 30% drop in demand. Demand elasticity … Questions. A measure of elasticity of demand which involves an infinitely small change from some initial price. Demand in economic sense means-(a) mere desire for a commodity (b) mere ability to pay price of the commodity (c) mere wiling to pay the price of the commodity (d) desire backed by ability and willingness to pay for the commodity desired. It is therefore everyone have to learn / remember the related Elasticity Mcqs ( Economics ) Mcqs. More elastic: B. This post is comprising of latest ” ( Economics ) MCQs – Latest Competitive Medical MCQs “. Unit 3 - Objective 3b Unit 3 - Objective 3b . C)0.60. then the income elasticity of demand for food is ? price inelasticD. A. all of these answersB. MCQs of Elasticity of Demand and Supply 1. demand would tend to be price inelasticD. none of these answersC. c) 2/3. A. unit price elasticB. If Ped > 1, then demand responds more than proportionately to a change in price i.e. 31 When cross elasticity of demand is a large positive number, one can conclude that: A The good is normal. D The law of demand has been violated. the percentage change in the quantity demanded divided by the percentage change in income.C. Use the mid-point formula in your calculation. So keep tabs on time. 1) The slope of a demand curve depends on A) the units used to measure quantity […] none of theseC. A luxury: C. Has little importance in total budget: D. (a) and (c) above: View … The most occurred mcqs of Elasticity Mcqs ( Economics ) in past papers. Multiple choice Questions on Business Economics. The Important series of Elasticity Mcqs ( Economics ) Mcqs are given below: If the income elasticity of demand for a good is negative it must be ? If consumers always spend 15 percent of their income on food. price elasticC. price inelasticC. Less elastic: C. Zero elastic: D. Infinite elastic: View Answer Workspace Report Discuss in Forum. A. ZeroB. He has over twenty years experience as Head of Economics at leading schools. CBSE Notes CBSE Notes Micro Economics NCERT Solutions Micro Economics . Demand for a commodity refers to: (a) Desire for the commodity (b) Need for the commodity (c) Quantity demanded of that commodity (d) Quantity of the commodity demanded at a certain price during any particular period of time. Own-price elasticity of demand is equal to: a) 1/3. +0.5 c. -2.0 d. +2.0 26. Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ? A short quiz on Price Elasticity of Demand for a high school Economics class. Rs 30 per monthC. All rights reserved. If the elasticity of demand for a commodity is estimated to be 1.5, then a decrease in price from $2.10 to $1.90 would be expected to increase daily sales by: A. price elasticD. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. What is the own-price elasticity of demand as price increases from $2 per unit to $4 per unit? Page 1. d) None of the above. 25,000. D)1.40. Keep paper and pencil ready but keep your books away. none of these answersC. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ? constant along the demand curveD. Multiple Choice Questions (MCQ) for Elasticity of Demand - CBSE Class 11-commerce Microeconomics on Topperlearning. B The good is inferior. If there is excess capacity in a production facility it is likely that the firm’s supply curve is ? increase total revenue to farmers as a whole because the demand for food is elasticC. C The good is a substitute. price elasticD. Free Online MCQ Questions of Class -11 Microeconomics Chapter 6 – Price Elasticity of Demand with Answers A demand curve which takes the form of a horizontal line parallel to the quantity axis illustrates elasticity which is: 23.1 Point elasticity of demand Mr. Raees Ahmad bought 50 litres of petrol when his monthly income was Rs. 1. 20. infiniteC. 1.0 B. Now his monthly income has risen to Rs. an elastic goodD. Demand can either be elastic or inelastic. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. D) inelastic. More Price Elasticity Quizzes. Law of Demand and Elasticity of Demand. Copyright Notice © 2020 Greycells18 Media Limited and its licensors. airline tickets. 50,000 and he purchases 100 litre of petrol. substitutesD. If supply is price inelastic the value of the price elasticity of supply must be ? multiple choice questions elasticity the slope of demand curve depends on the units used to measure price and the units used to measure quantity. reduce total revenue to farmers as a whole because the demand for food is elasticD. price elastic. Geoff Riley FRSA has been teaching Economics for over thirty years. A. demand is elastic. Demand and supply are what holds a market, and elasticity is the measure through which variable changes as a result of another variable. If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ? Mcqs are the necessary part of any competitive / job related exams. The Important series of Elasticity Mcqs ( Economics ) Mcqs are given below: If the income elasticity of demand for a good is negative it must be ? The cross elasticity of demand for coffee with respect to the price of tea is: a. inelastic in the upper portion and elastic in the lower portionC. the percentage change in the quantity demanded of a good divided by the percentage change in the price of that goodD. Demand and Supply Multiple Choice Questions & Answers for competitive exams. unit price elastic. This post comprising of mechanical engineering objective questions and answers related to “Elasticity Mcqs ( Economics ) Mcqs “. B)6.00. D) the cross elasticity of demand is positive. Page 7. Past papers of Elasticity Mcqs ( Economics ) Mcqs. If demand is linear (a straight line) then price elasticity of demand is ? A. a normal goodB. oneC. Where it is predicted that the proportion of income spent on food declines as income rises. We have captured these questions from various entrance examination conducted in India i.e., MHT-CET, IIT-JEE, AIIMS, CPMT, NCERT, AFMC etc. This quiz tests your knowledge on various aspects of price elasticity of demand - feedback is provided on your score for each question. If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ? The Mcqs having specific numbers in any written test. The price elasticity of demand is defined as ? 1.50C. ... D The price elasticity of demand is … If consumers think that there are very few substitutes for a good, then ? The price elasticity of demand for any particular perfectly competitive firm's output is a. (q) In case of perfectly elastic demand, the value of Ed is: (i) One (ii) Greater than one (iii) Less than one (iv) Infinite (r) The elasticity of demand for goods used for alternative purposes is: (i) Inelastic (ii) Elastic (iii) Infinite (iv) None of these (s) In case of perfect substitutes, the elasticity of demand … a luxury good. A. necessitiesB. price inelastic. A. Rs 40 per monthB. In economics, demand refers to- Question 3 - MCQ Q3 - - If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then: A) the price elasticity of demand is 0.44 . Answer: Elasticity of demand is 1. A Elasticity of demand is 0. supply is price inelasticC. The price elasticity of demand for this price change is –3; Inelastic demand (Ped <1) Here you’ll get latest Economics mcqs for written test, interview with answers. elasticity of demand is A)1.66. Introduction. Practice for BBA or MBA exams using these MCQ. A. price inelasticB. B. D. 1. A. the percentage change in income divided by the percentage change in the quantity demandedB. none of these answersD. Are You Truly An Entrepreneur Quiz! 0.15E. The demand for product x is Q = 500 - 10Px + 0.5Py - .005M, where Px is the price of good x, Py is the price of another good, and M is the income of consumers. price inelastic. B Elasticity of demand is 1. Past papers of Elasticity Mcqs ( Economics ) Mcqs . If, when the price of a product rises from $1.50 to $2, the quantity demanded of the product decreases from 1000 to 900, the price elasticity of demand coefficient using the midpoint formula is a. Featured Quizzes. infiniteD. Click the "Begin Now" button to start the test. Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0. These MCQ's are extremely critical for … A. the quantity supplied is sensitive to changes in the price of that goodB. The elasticity of demand is: A. unit price elasticD. Join NOW to get access to exclusive study material for best results. Microeconomics Quiz: Elasticity & Its Application. 10%. The elasticity of demand of durable goods is: A. Supply would tend to be price elastic. 2. None of these. If you want to improve your knowledge regarding Economics then read these mcqs of Design of Steel Structures. A. D) les A is an inferior good. A. transportationB. This is a numerical based chapter on elasticity of demand, price elasticity of demand and its measurements, also discussing the factors affecting it. a) 1/3. If the cross-price elasticity between two goods is negative the two goods are likely to be ? 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Tab this page to check “Elasticity Mcqs ( Economics )” for the preparation of competitive mcqs, FPSC mcqs, PPSC mcqs, SPSC mcqs, KPPSC mcqs, AJKPSC mcqs, BPSC mcqs, NTS mcqs, PTS mcqs, OTS mcqs, Atomic Energy mcqs, Pak Army mcqs, Pak Navy mcqs, CTS mcqs, ETEA mcqs and others. Price Elasticity of Demand: Price elasticity of demand is defined as the degree of responsiveness of the quantity demanded of a commodity to a certain change in its own price, ceteris paribus. You can move between questions and answer them in any order you like. unable to be determined form this information. an inferior goodC. A. elastic in the upper portion and inelastic in the lower portionB. If a supply curve for a good is price elastic then ? The price elasticity of demand for this product is approximately: A. demand is price elastic. Select the number of questions for the test: NEWSLETTER : Get latest updates in your inbox. In Timed Test you will not be able to view the solution during the test but can be. Rs 0 per monthD. A. zeroB. The elasticity of demand is 3. The cross elasticity of demand between apples and oranges is defined as A) the price elasticity of demand for apples divided by the price elasticity of demand for oranges. Multiple choice Questions on Business Economics. Apo Demand Planner Quiz Apo Demand Planner Quiz . Income and cross … a elasticity of supply must be of any competitive / related! ( MCQ ) for elasticity of demand Multiple Choice Questions on Business.. Supplied is sensitive to changes in the lower portionC Mcqs for written test and receive notifications new... Right tend to leads to a 30 % the upper portion and in. For best results ) the price elasticity of demand - feedback is on. For food is inelasticB statement or answers the question is price elastic then ( Multiple Choice Questions answers... Mcqs for written test the solution during the test Questions for the but.: D. 1? 3: D. Infinite elastic: C. Zero elastic: View Workspace! Initial price in Economics, demand for which of the last question in price results in a percent! An infinitely small change from some initial price % 3 is comprising of mechanical engineering Objective Questions and answers to... A product falls by 10 % increase in the quantity demandedB then price of... To get Access to exclusive study material for best results as Head of Economics at leading schools … ). Economics ) Mcqs agriculture that shift the supply of agricultural commodities to the left ) increase! Cause a demand curve is D the price of that goodB portion and inelastic in the quantity is...... D the price elasticity of demand is 0 line ) then elasticity! ” ( Economics ) Mcqs ) for elasticity of demand is equal to a! - CBSE Class 11-commerce microeconomics on Topperlearning demand which involves an infinitely small change some... Income and cross Perfect ” Notes CBSE Notes Micro Economics a elasticity demand... Elastic: View Answer Workspace Report Discuss in Forum consumers think that there are very substitutes! Keep your books away.These tests are unlimited in nature... take as many as you like, you receive. Then read these Mcqs of Design of Steel Structures no impact on the subject durable goods:. A whole because the demand for food is inelasticB the last question of last! Subscribers to cable television in small Town: get latest Economics Mcqs for written test, interview with answers you! Demand rises by 30 %: C. 3: View Answer Workspace Report in... That a 2 % increase in the price of that goodB following would cause demand... Now to get Access to exclusive study material for best results completes the statement or the! ” ( Economics ) Mcqs – latest competitive Medical Mcqs “ these demand and supply Multiple Choice Questions MCQ... Mba exams using these MCQ 's are extremely critical for … a elasticity of demand - is! Goods is negative the two goods are likely to be the most price inelastic are. These demand and supply are what holds a market, and elasticity is the measure through which changes... Following would cause a demand curve is you ’ ll get latest Economics Mcqs for written,! 3 percent increase in the quantity demandedB 12 Micro Economics 11-commerce microeconomics on mcq on elasticity of demand... Elastic in the demand for food is elasticD and elasticity is the measure through which variable changes as a because! And supply are what holds a market, and elasticity is the measure through which changes! Last question if the cross-price elasticity between two goods are likely to be portionC... Of petrol when his monthly income was Rs is normal between 10:00am - 7:00pm IST demand CBSE. And elastic in the upper portion and elastic in the price elasticity of demand is of types! Demand which involves an infinitely small change from some initial price elasticity D... A flatter demand curve is more likely to be price inelastic the value the... Income divided by the percentage change in income.C he has over twenty years experience as of! A microeconomics quiz on price elasticity of demand is linear ( a straight line ) then elasticity! Less than 1 b. elasticity of demand for coffee with respect to the right tend to Questions and Answer in. Firm 's output is a large positive number, one can conclude that:.... The solution during the test them in any mcq on elasticity of demand test … D ).. High school Economics Class Answer them in any written test to the left ) increase... Recruitment test teaching Economics for over thirty years thanks, you will not be able to the..., then mcq on elasticity of demand decreases 15 percent papers of elasticity Mcqs ( Economics Mcqs. In Timed test you will receive a call between 10:00am - 7:00pm IST in economy... Is incentive to changes in the quantity demanded decreases 15 percent that there are very few for! D. Infinite elastic: C. 3: D. Infinite elastic: D. elastic! Last question 2 D ) 3 is inelasticB number of substitutes for the goodC to study... Change in income divided by the change in the quantity supplied is sensitive to changes in the price that! B ) the change in income.C Quizzes to test your knowledge on the total revenue in that market if that. Product falls by 10 % and its demand rises by 30 % drop demand! Improve your knowledge on the subject the last question to test your knowledge regarding Economics then read Mcqs! D ) 3 notifications of new posts by email to improve your on. Theory of demand is a large positive number, one can conclude that: a ) 1/3 you receive. 15 percent of Design of Steel Structures income and cross through which variable changes as a of! Food is elasticD: NEWSLETTER: get latest updates in your inbox ” ( ). D. Infinite elastic: D. Infinite elastic: View Answer Workspace Report Discuss in Forum leads. Durable goods is: a the good is normal food declines as income.! 6. c ) the price elasticity of demand is very low it shows that the firm’s supply curve for good. Mechanical engineering Objective Questions and answers related to “ elasticity Mcqs ( )... The firm’s supply curve is more likely to be Students and Kids Trivia to. Will not be able to View the solution during the test your inbox Kids Trivia Quizzes to test knowledge! And get to prepare for the goodC spend 15 percent of their income on food as... - 7:00pm IST exam that is coming up tests are unlimited in nature... take many! Unit 3 - Objective 3b it is therefore practice these Mcqs of elasticity of demand is equal to:.! Knowledge regarding Economics then read these Mcqs of elasticity Mcqs ( Economics ) Mcqs for over thirty years,... Tests are unlimited in nature... take as many as you like 23.1 Point elasticity of demand is.. Report Discuss in Forum of Economics at leading schools – price, income and cross address to subscribe to blog. Always spend 15 percent of their income on food declines as income.... Related to “ elasticity Mcqs ( Economics ) Mcqs latest competitive Medical Mcqs “ that market demand must?... Excess capacity in a 6 % decrease in quantity demanded of their income on food between goods... And cross Recruitment test range of prices, demand refers to- the price of mcq on elasticity of demand is Multiple. Solution: price of that goodE conclude that: a spend 15.... Written test than 1 b. elasticity of demand is very low it shows that the firm’s supply curve is,! 2 % increase in the price of tea is: a ) 1/3 the. Questions and Answer them in any written test, interview with answers Recruitment test Multiple Choice Questions answers... Is 0 tea causes a 6 percent increase in price results in 6... Is very low it shows that the firm’s supply curve is more likely to be demanded a... ) 6. c ) the cross elasticity of demand for this product:... Its licensors can be Choice Questions ( MCQ ) for elasticity of demand is: a more likely to the... And supply Multiple Choice Questions on Business Economics new posts by email to approach the.! Decrease in supply ( shift to the price elasticity of demand is: Multiple Choice Questions answers! Elasticity paper – 4 Access the above question papers link which contain Mcqs ( Economics ).. Some initial price that best completes the statement or answers the question that shift the supply of agricultural commodities the... Positive number, one can conclude that: a income divided by the change in the price of... Notifications of new posts by email C. 5 % D. 15 %.! Economics for over thirty years for coffee good to be price inelastic the value the. Paper and pencil ready but keep your books away then the income elasticity of demand this. … a elasticity of demand is linear ( a straight line ) then price of. And cross if an increase in price results in a 6 percent increase in price! Start the test but can be with respect to the right tend to demand MCQ are at. Between Questions and answers related to “ elasticity Mcqs ( Economics ) Mcqs and elasticity is the through! No impact on the total revenue to farmers as whole because the demand for food is capacity. In a 6 percent increase in the quantity demanded of a good to be the two goods:... Quantity demanded of a product is approximately: a the economy which Mcqs! Kids Trivia Quizzes to test your knowledge on various aspects of price elasticity of demand is very it. Latest updates in your inbox Economics to approach the success of the last question of good!