Price Elasticity of Demand Quiz

If the elasticity of demand is greater than 1 demand is

• Unitary elastic

• Inelastic

• Elastic

• Infinitely elastic

When the demand curve is a straight line parallel to the x-axis, demand is

• fairly elastic

• fairly inelastic

• Perfectly elastic

• Perfectly inelastic

If the elasticity of demand for a commodity is less than 1, demand is

• Unitary elastic

• Inelastic

• Infinitely elastic

• Zero elastic

If the price of a commodity rises from N2 to N4 and its demand decreases from 125 to 100 then the co-efficient of elastic of demand is

• 0.02

• 0.20

• 0.25

• 5

For a good having close substitutes the price elasticity of demand is likely to be

• Zero

• negative

• more than 1

• less than 1