Elasticity of Demand - 4

Rectangular hyperbola : ___________ :: Flatter slope : Relatively elastic demand.

• Relatively inelastic demand

• Perfectly elastic demand

• Unitary elastic demand

• Relatively elastic demand

The formula of total expenditure method is ____________

• Total expenditure = Price × Quantity demanded

• Total expenditure = Price x Cost per unit

• Total expenditure = Revenue - cost

Identify the incorrect statement:

• The concept of elasticity of demand is also useful to a monopolist to practice price discrimination

• The concept of elasticity is useful in formulating export and import policy of a country.

• The concept of elasticity of demand is not relevant in determination of factor prices.

50% fall in price leads to 25% rise in quantity demanded is example of ______________ demand.

• Perfectly inelastic

• Relatively inelastic

• Unitary elastic

Elasticity of demand is measured at any point on the demand curve using ________________ method.

• Ratio or Percentage method

• Total expenditure method

• Point or Geometric method

In case of perfectly inelastic demand the elasticity is _______

• Ed=1

• Ed>1

• Ed=0

Relatively inelastic : Short run :: ___________ : Long run.

• Unitary elastic

• Perfectly elastic

• Relatively elastic

In case of relatively elastic demand , the elasticity is____________

• Ed=1

• Ed >1

• Ed<1

• Ed=0

Possibility of Postpone : _____________ :: Impossible to Postpone : Relatively inelastic

• Relatively elastic

• Unitary elastic

• Perfectly inelastic

'Lower segment of demand curve below the given point / Upper segment of demand curve above the given point'- This is the formula of ________ method.

• Total expenditure method

• Point or Geometric method

• Ratio or percentage method.