Practice Test

Q1) ______ is the responsiveness of demand to a change in price. Show Answer

Q2) Elasticity of demand is relatively elastic, it is shown as________. Show Answer

Q3) Elasticity of demand is relatively inelastic, it is indicated by ______. Show Answer

Q4) Perfectly elastic demand curve is parallel to _________ as its effect is infinite. Show Answer

Q5) Perfectly inelastic demand curve is a _________ straight line as its effect is zero. Show Answer

Q6) If the demand curve is a rectangular hyperbola, elasticity co-efficient value is _________. Show Answer

Q7) Demand may be __________ when it responds greatly to a change in price. Show Answer

Q8) Demand may be _________ when it shows no sensitivity to a change in a price. Show Answer

Q9) When change in price has no effect on quantity demanded, the demand is perfectly ________. Show Answer

Q10) When a existing in price brings about infinite change in quantity demanded, the demand is perfectly _________. Show Answer

Q11) If change in price brings about more than proportionate change in quantity demanded, the Ed is relatively ________. Show Answer

Q12) If change in price brings about less than proportionate change in quantity demanded, the Ed is relatively ________. Show Answer

Q13) Ratio of lower-segment to upper-segment of a straight line demand-curve measures ________ elasticity. Show Answer

Q14) The demand for a commodity is more elastic in the ________ run. Show Answer

Q15) The demand for a commodity having many substitutes is _______. Show Answer

Q16) The demand for product/goods having a specific use only is __________. Show Answer

Q17) Demand for necessaries is _________. Show Answer

Q18) Demand for durables is _______. Show Answer

Q19) Demand for luxuries is ________. Show Answer

Q20) Demand for salt is _______. Show Answer

Q21) When demand is _________ the demand curve is a vertical straight line. Show Answer

Q22) If the slope of the demand curve is perfectly rectangular hyperbola then demand is ______. Show Answer

Q23) Income elasticity for giffen's goods is ________. Show Answer

Q24) Perfectly elastic demand is a ________ concept. Show Answer

Q25) The ratio of lower segment to the upper segment of a straight line demand curve measures ______ elasticity. Show Answer

Q26) Perfectly elastic deamand curve is parallel to _______ axis. Show Answer

Q27) Demand for prestigious goods is ________. Show Answer

Q28) If with a fall in price, total revenue decreases demand is ______. Show Answer

Q29) Demand for complementary goods is relatively _______. Show Answer

Q30) Demand for substitute goods is ______. Show Answer

Q31) If price falls by 10% and demand rises by 20%, then elasticity of a demand is _______. Show Answer

Q32) When the demand is perfectly inelastic, price elasticity of demand is _______. Show Answer

Q33) When percentage incrases in quantity demanded is less than the percentage fall in price, demand is relatively _______. Show Answer

Q34) When elasticity of demand for a good is _______, the total outlay on it remains constant. Show Answer

Q35) Change in demand due to the change in price is called ______ elasticity. Show Answer

Q36) Change in demand due to the change in income is called ______ elasticity. Show Answer

Q37) Change in demand due to the change in price of joint or substitute goods is called _______ elasticity. Show Answer

Q38) Necessary goods have _______ demand. Show Answer

Q39) Comfort or luxury goods have ______ demand. Show Answer

Q40) _______ goods have less elastic demand. Show Answer

Q41) Demand for match box is ________. Show Answer

Q42) Perfectly inelastic demand curve is parallel to _______axis. Show Answer

Q43) Demand elasticity can be measured from demand curve by ________ method. Show Answer

Q44) The measurement of the variation in demand over a range of a demand curve rather than at a point on it is called. Show Answer

Q45) The responsiveness of demand of a commodity to a given change in its price is called_______ elasticity of demand. Show Answer

Q46) The responsiveness of demand of a commodity to a given change in the income of the consumer is called_______ elasticity of demand. Show Answer

Q47) The responsiveness of quantity demanded of a commodity to a given change in the price of a related commodity substitutes or complementary is called________ elasticity of demand. Show Answer

Q48) The numerical value of elasticity greater than one is ______ demand. Show Answer

Q49) No change in quantity demanded for a given change in price is _______ demand. Show Answer

Q50) Demand for composite goods is relatively _______. Show Answer

Q51) Government imposes more taxes on goods which have _______ demand. Show Answer

Q52) Typewriter has ________ demand. Show Answer

Q53) The elasticity of demand of pins is ______. Show Answer

Q54) In case of normal goods, income elasticity of demand is _________. Show Answer

Q55) In case of substitutes, the cross price elasticity of demand is equal to ________. Show Answer

Q56) In case of complemantary goods, the cross price elasticity of demand is equal to ________. Show Answer

Q57) The concept of elasticity of demand is useful _______. Show Answer

Q58) The monopolist can earn more profit by _______. Show Answer

Q59) With a rise in price, if the total expenditure also rises, then demand will be ______. Show Answer

Q60) With a fall in price, if the total expenditure remains constant, then demand will be ________. Show Answer

Q61) If more substitutes are available for a commodity, then demand is _________. Show Answer

Q62) Demand elasticity of habitual good is _______. Show Answer

Q63) The demand for consumer goods is ______ demand. Show Answer

Q64) A small change in price brings about more than proportionate change in demand is called as an ______ demand. Show Answer

Q65) There is an inelastic demand, when change in price leads to ________ proportionate change in quality demanded. Show Answer

Q66) Price elasticity of demand refers to the extent to which demand for commodity rises or falls due to the change in the_________. Show Answer

Q67) When change in price leads to same proportionate change in quantity demanded,then there is said to be _______ demand. Show Answer

Q68) Demand is said to be perfectly elastic, when at a given price the quantity demanded ______. Show Answer

Q69) In the case of salt or newspapers, the demand is said to be _______ demand. Show Answer

Q70) The demand for milk, fruits, vegetables is said to have coefficient of elasticity _______. Show Answer

Q71) In case of relatively inelastic demand, the price elasticity is _______. Show Answer

Q72) Income elasticity of demand is negative in case of _______ goods. Show Answer

Q73) A unitary elastic demand curve is a rectangular hyperbola. Show Answer

Q74) There is a positive relationship between the demand for goods and change in income. Show Answer

Q75) When the commodity demanded does not change with change in its price , then the demand is said to be elastic. Show Answer

Q76) If the demand is less than unitary elastic, the total outlay of a consumer will change in opposite direction to that of price. Show Answer

Q77) The demand for luxury is highly elastic while that of necessary is inelastic. Show Answer

Q78) More taxes are levied by the government on the goods with the elastic demand. Show Answer

Q79) Very high or very low price goods have inelastic demand. Show Answer

Q80) The life saving medicine has relatively inelastic demand. Show Answer

Q81) Goods which require a large proportion of consumer?s income have inelastic demand. Show Answer

Q82) Joint goods have elastic demand and moderate priced goods have inelastic demand. Show Answer

Q83) The concept of elasticity of demand has no practical importance. Show Answer

Q84) A perfectly inelastic demand curve is a horizontal straight line. Show Answer

Q85) If elasticity of demand is infinite then the demand curve is a vertical straight line. Show Answer

Q86) The geometric method is more exact method of measuring elasticity of demand. Show Answer

Q87) If the total outlay remains unchanged with a change in price, the outlay curve is vertical and said unit elastic. Show Answer

Q88) Perfectly elastic demand is a realistic concept. Show Answer

Q89) Price elasticity of demand is measured by a ratio of the percentage change in quantity demanded to that of price. Show Answer

Q90) Income elasticity of demand for a commodity is high if it has a many substitutes in the market. Show Answer

Q91) Durable and less urgent goods have inelastic demand. Show Answer

Q92) Demands for essential commodities are elastic. Show Answer

Q93) Price elasticity of demand on a linear demand curve at the X axis is ______. Show Answer

Q94) Price elasticity of demand on a linear demand curve at the Y axis is equal to ______. Show Answer

Q95) Demand curve is parallel to X axis, in case of _______. Show Answer

Q96) When percentage change in quantity demanded is more than the percentage change in price, the demand curve is ______. Show Answer

Q97) Ed = 0 in case of _______. Show Answer

Q98) When percentage change in quantity demanded is less than the percentage change in price, the demand curve is ______. Show Answer

Q99) When changes in price does not affect demand at all, it is called as ______. Show Answer

Q100) When slight change in price brings infintie change in demand, then ______. Show Answer

Q101) When percentage change in quantity demanded is equal to changes in price, the demand curve is ______. Show Answer

Q102) Demand for salt is ______. Show Answer

Q103) Demand for medicine is _______. Show Answer

Q104) Demand for cosmetics is ______. Show Answer

Q105) Demand for air conditions is ______. Show Answer

Q106) Demand for essential commodities in life is ______. Show Answer

Q107) Demand for school uniform is ______. Show Answer

Q108) Demand for non habituated goods is _____ demand. Show Answer

Q109) Specific uses of a commodity demand is ______. Show Answer

Q110) In case of inferior goods the income elasticity of demand is ______. Show Answer

Q111) In case of necessary goods the income elasticity of demand is ______. Show Answer

Q112) In case of substitute goods the cross elasticity of demand is ______. Show Answer

Q113) The following are the types of elasticity of the demand.
i. Income elasticity
ii. Relative elasticity
iii. Price elasticity
iv. Cross elasticity Show Answer

Q114) The following are types of price elasticity of demand.
i. Relatively inelastic demand
ii. Unitary elastic demand
iii. Perfectly inelastic demand
iv. Relatively elastic demand Show Answer

Q115) The following commodities would have a negative cross elasticity.
i. pen & biscuits
ii. milk & tea
iii. car & petrol
iv. tea & coffee Show Answer

Q116) The following commodities have perfectly inelastic demand.
i. salt
ii. movie tickets
iii. life saving medicines
iv. perfumes Show Answer

Q117) This is not a method of measuring price elasticity of demand.
i. Arithmetic method
ii. Point method
iii. Total outlay method
iv. Curve method Show Answer

Q118) Which of these are factors influencing elasticity of demand?
i. Nature of the commodity
ii. Time period
iii. Income of the consumer
iv. Urgency of the need Show Answer

Q119) The demand will be relatively inelastic in the following cases.
i. Necessary good
ii. Short-period
iii. Habitual goods
iv. Easy availability of substitutes Show Answer

Q120) The demand will be relatively elastic in the following cases.
i. Luxury goods
ii. Short-period
iii. Low income of consumer
iv. Goods needed urgently Show Answer

Q121) The value of Ed will be greater than 0 in the following cases.
i. Perfectly elastic demand
ii. Unitary elastic demand
iii. Perfectly inelastic demand
iv. Relatively elastic demand Show Answer

Q122) The concept of elasticity of demand has the following importance.
i. To producer for fixing prices
ii. To government for framing tax policy
iii. For determination of factor prices
iv. To fix terms & conditions in foreign trade Show Answer

Q123) Assertion (A): Prof. Alfred Marshall explained the concept of elasticity of demand.
Reasoning (R): The law of demand failed to explain quantitative relationship between demand and price. Show Answer

Q124)
Assertion (A): Elasticity of demand explains that one variable is influenced by another variable.
Reasoning (R): The concept of elasticity of demand indicates the effect of price and changes in other factors on demand. Show Answer

Q125) Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is called cross elasticity.
Reasoning (R): Change in the consumer's income leads to a change in the quantity demanded. Show Answer

Q126)
Assertion (A): Degree of price elasticity is less than one in case of relative inelastic demand.
Reasoning (R): Change in demand is less than the change in price. Show Answer

Q127) Assertion (A): Necessary goods have negative income elasticity.
Reasoning (R): The demand for necessary goods remain constant with increase in income of consumer. Show Answer

Q128) Assertion (A): Substitute goods have positive cross elasticity.
Reasoning (R): Cross elasticity is change in demand of one commodity due to change in price of another commodity. Show Answer

Q129) Assertion (A): In case of unitary elastic demand, demand curve is horizontal straight line parallel to x-axis.
Reasoning (R): When a proportionate change in price leads to exact proportionate change in quantity demanded, then demand is said to be unitary elastic. Show Answer

Q130) Assertion (A): Air conditioners have relatively elastic demand.
Reasoning (R): Air conditioners are comfort goods and a change in price leads to a more than proportionate change in demand. Show Answer

Q131) Assertion (A): Percentage method is also known as total outlay method.
Reasoning (R): According to percentage method, elasticity is measured by dividing percentage change in demand by the percentage change in price. Show Answer

Q132) Assertion (A): The demand for milk, vegetables, meat etc. will be relatively elastic.
Reasoning (R): A change in price of a perishable commodity will lead to a limited change in its demand. Show Answer

Q133) Assertion (A): Longer the duration, greater will be the elasticity of demand.
Reasoning (R): Consumer can change his consumption habits in the long run in favour of cheaper substitutes. Show Answer

Q134) Assertion (A): The concept of elasticity of demand is useful to determine terms of foreign trade.
Reasoning (R): The concept of elasticity of demand is of great importance to farmers, producers, government etc. Show Answer

Q135) Demand curve is parallel to Y-axis, in case of __________. Show Answer

Q136) The demand for salt is __________. Show Answer

Q137) Ed > 1 in case of _________. Show Answer

Q138) Income elasticity of demand for inferior goods is ___________. Show Answer

Q139) The demand is relatively elastic when the total outlay _________ with a given change in price of a commodity. i Show Answer

Q140) When the value of upper segment of demand curve above a given point is more than the value of lower segment, the demand is ___________. Show Answer

Q141) Those commodities whose demand is ___________ will be taxed more. Show Answer

Q142) ___________ considered the concept of elasticity of demand to be the most important contribution of Alfred Marshall? Show Answer