elasticity of demand

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

• perfectly elasticity

• perfectly inelasticity

• less elastic

• highly elastic

demand for a good is less elastic when

• % change in price $>$ % change in quantity demanded

• % change in quantity demanded $>$ % change in price

• % change in price = % change in quantity demanded

• demand remains same even with change in price

if the % inc in quantity demanded of a commodity is less than the % fall in its price, then elasticity of demand

• $>$ 1

• =1

• $<$ 1

• 
  =0

a 5% fall in the price of X leads to a 10% rise in its demand. In case of good Y, a 2% rise in price leads to a 6% fall in its demand. In the given case, ______ is more elastic

• X

• Y

• both X and Y are equally

• Both X and Y are inelastic

in case of ____ there is an infinite demand at a particular price and demand becomes zero with a slight rise in price

• perfectly inelastic

• less elastic

• highly elastic

• perfectly elastic

a firm is currently selling 10000 units of its product per month. The firm plans to reduce the retail price from Rs.1 to Rs.0.90. From the previous experience, the firm knowns that the price elasticity of demand for the products is (-)1.5. Assuming no the other changes, the firm can now expect the sales of

• 8500 units

• 10500 units

• 11000 units

• 11,500 units

price elasticity of demand of a good is (-)3. It shows that

• when price falls by 1%, demand rises by 3%

• when price rises by 1 % demand falls by 3%

• either (a) or (b)

• neither (a) nor (b)

the indian government imposed heavy taxes on commodity to reduce its consumption by public, such taxes will decrease the demand of the commodity only when

• Ed=0

• Ed $>$ 1

• Ed $<$ 1

• Ed=1

Assertion: in perfectly elastic demand, when there is an infinite demand at a particular price and demand becomes zero with a slight rise in the price.

Reasoning: price elasticity of demand is not affected by absolute change in demand or price

• Both (A) and (R) are true and reason is the correct explanation of Assertion.

• Both A and R are true but reason is not the correct explanation of Assertion.

• Assertion is true but Reason is false.

• Assertion is false but reason is true

Assertion: rectangular hyperbola is a curve under which the total area at all points will be the same

Reasoning: responsiveness of the demand in relation to price does not determine the change in expenditure.

• Both (A) and (R) are true and reason is the correct explanation of Assertion.

• Both A and R are true but reason is not the correct explanation of Assertion.

• Assertion is true but Reason is false.

• Assertion is false but reason is true