Elasticity is the measure of ___ .

• responsiveness

• change

• price

• need

All such demand curves where quantity demanded is totally unresponsive to changes in price are called

• perfectly elastic demand curve

• perfectly inelastic demand curve

• Unitary elastic demand curve

• none of the above

Such horizontal demand curves, where quantity demanded is infinitely responsive to price changes, are called

• Unitary elastic demand curve

• perfectly inelastic demand curve

• perfectly elastic demand curve

• none of the above

Luxury goods tend to have an

• elastic demand

• inelastic demand

• unitary demand

• none of the above

Necessity goods tend to have an

• elastic demand

• inelastic demand

• unitary demand

• none of the above

Cross elasticity of demand is:

• negative for complementary goods

• negative for substitute goods.

• unitary for inferior goods

• positive for inferior goods.

For which product is the income elasticity of demand most likely to be negative?

• computer software

• basketballs

• used clothing

• bread

The price elasticity of demand measures how much

• price responds to a change in demand

• demand responds to a change in supply.

• quantity demanded responds to a change in income.

• quantity demanded responds to a change in price.

In the case of perfect elasticity, the demand curve is

• Vertical

• Horizontal

• Flat

• Steep

Outlay method of measurement of elasticity is also called as

• Percentage method

• Expenditure method

• Point method

• Geometric method