Elasticity of Demand - 2

Price elasticity of demand on a linear demand curve at the X axis is _______.

• Infinity

• one

• Less than one

• Zero

 Demand curve is parallel to Y axis, in case of _______

• Perfectly elastic demand

• Perfectly inelastic demand

• Relatively elastic demand

• Relatively inelastic demand

Straight line demand curve : Linear demand curve :: __________: non linear demand curve

• Concave to origin

• Intersecting the origin

• Convex to origin

Give economic term:- Degree of responsiveness of quantity demanded to change in income only.

• Cross Elasticity of Demand

• Price Elasticity of Demand

• Income Elasticity of Demand

Ratio method : Ed = %∆Q / %∆P :: __________________: Ed = Lower segment / Upper segment

• Algebraic method

• Percentage method

• Geometric method

• Aggregate method

Perfectly elastic demand : Ed = ∞ :: __________: Ed= 0

• Relatively elastic demand

• Perfectly elastic demand

• Perfectly inelastic demand

• Relatively inelastic demand

Normal goods for which demand increases with increase in income is known as :

• Zero income elasticity

• Positive income elasticity

• Negative income elasticity

When percentage change in quantity demanded is more than the percentage change in price, the demand curve is _______.

• Steeper

• Flatter

• Rectangular

• Horizontal

Ed = 0 in case of ________.

• luxuries

• comforts

• normal goods

• necessities

 Pen and ink : ___________:: Tea and Coffee: Substitutes.

• Complimentary goods

• Prestige goods

• Habitual goods

• Giffen goods