Elasticity of Demand - 3

Price elasticity of demand on a linear demand curve at the Y-axis is equal to _____.

• Zero

• one

• infinite

• Greater than one

Elasticity resulting from a proportionate change in quantity demanded due to a proportionate change in price.

• Perfectly elastic demand

• Unitary elastic demand

• Relatively elastic demand

• Perfectly inelastic demand

Demand for luxury goods is _________.

• inelastic

• elastic

• infinite inelastic

• unitary elastic

When factors are available in abundance the demand for factors is_______

• Relatively elastic

• Relatively inelastic

• Perfectly inelastic

• Unitary elastic

Those commodities whose demand is relatively inelastic will be taxed more because it will not affect their demand much and vice-versa.

• Agree

• Disagree

Find odd word out:

• Salt

• Milk

• Water

• Soft drinks

Change in quantity demanded of one commodity due to a change in the price of other commodity is ___________ elasticity.

• Price elasticity

• Income elasticity

• Cross elasticity

Normal goods for which demand increases with increase in income have _____________

• Positive income elasticity

• Negative income elasticity

• Zero income elasticity

Positive cross elasticity : ______________ :: Negative cross elasticity : Complementary goods.

• Joint goods

• Substitute goods

• Composite goods

• Non-related goods

Inferior or goods for which demand decreases with increase in income of consumer have _____________ elasticity

• Positive income elasticity

• Negative income elasticity

• Zero income elasticity