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WorksheetsELASTICITY (CHAPTER 5)
Total questions: 10
Worksheet time: 17mins
Azmadi Bakery observes the following: When it raises the price of bread, the total revenue from bread increases, and vice versa. This indicates that
the demand for bread must be unitary elastic
the demand for bread must be inelastic
the demand for bread must be elastic
there are many substitutes for bread
Suppose that each piece of chicken sold at KFC'S is RM5.00, regardless of the quantity of ice-creams produced. This shows that the supply of chicken is ................ and the price elasticity of supply is............
perfectly inelastic; zero
perfectly elastic;zero
perfectly inelastic; infinity
perfectly elactic;infinity
Based on a survey, the income elasticity of demand for Sony MP3 players is 1.85. This is shows that Sony MP3 players...................
are luxury goods
are normal hoods
have price elasticity of 1.85
None of the above
Which of the following goods and services has the highest price elasticity of demand, based on the proportion of income spent on them?
a haircut
toothbrush
iphone 11
curry powder
What do we call a good which has an income elasticity of less than 0?
Inferior goods
normal goods
luxury goods
substitutes goods
If the elasticity is greater than 1, is demand elastic or inelastic
(a)
If the elasticity equals to 0, is demand perfectly inelastic or elastic
demand perfectly inelastic
perfectly inelastic
Water has seen an increase in demand 8% this summer, while the price has decreased 12%. Calculate with basic formula.
(a)
Electricity has seen a decrease in demand of 14%, while the price has increased 18%. Calculate with basic formula
(a)
Louis Vuitton has seen a increase in demand of 70%, while the price has decreased 35%. Calculate with basic formula.
(a)
