QUIZ ON CHAPTER- DEMAND AND ELASTICITY OF DEMAND

Name

Class

Section

Q1 One factor that causes a movement along the demand curve of a commodity

• Fall in the price of substitute goods
• Rise in the price of complementary goods
• Fall in price of the good
• Rise in income

Q2 What is the relationship between slope and the demand curve?

• 1
• 0
• less than 1
• change in price /change in quantity demanded

Q3 Due to a 10 percent fall in the price of a good, its demand rises from 40 units to 50 units. Calculate its price elasticity of demand.

• 2.5
• 4.25
• 3.25
• 1.25

Q4 The value of elasticity in case of a rectangular hyperbola demand curve will be

• One
• Infinity
• greater than one
• less than 1

Q6 A rise in the income of the consumer leads to a fall in the demand for commodity ‘x’. What type of good is commodity ‘x’?

• inferior good
• normal good
• necessity good
• related good

Q7 One factor that causes a righttward shift of the demand curve out of the following is

• Rise in the price of complementary goods
• Fall in the price of substitute goods
• Rise in income (normal good)
• fall in income (normal good)

Q8 A consumer buys 100 units of a good at Rs. 5/- per unit. When its price changes, he buys 140 units. what is the new price if price elasticity of demand -2?

• 3
• 4
• 6
• 2