Free Printable Price Elasticity of Demand Quiz-1

1.

Price elasticity of demand means :

a)

Change in Demand

b)

Change in demand due to change in price

c)

Change in real income

d)

Change in price

2.

Price elasticity of demand is a :

a)

Qualitative Statement

b)

Quantitative Statement

c)

Both (i) and (ii)

d)

None of these

3.

Which of the following is a formula for measuring the elasticity of demand ?

a)

$\frac{Change\ \ in\ \ Demand}{Change\ \ in\ \Pr ice}$

b)

$\frac{Poportionate\ \ Change\ \ in\ \ Demand}{Poportionate\ \ Change\ \ in\ \ Pice}$

c)

$\frac{Poportionate\ \ Change\ \ in\ \ \Pr ice}{Poportionate\ \ Change\ \ in\ \ Demand}$

d)

None of the these

4.

Figure shows :

a)

High Elastic Demand

b)

Perfectly Elastic Demand

c)

Perfectly Inelastic Demand

d)

Inelastic Demand

5.

With which method, elasticity of demand is measured ?

a)

Total Expenditure Method

b)

Point Method

c)

Arc Method

d)

All of these

6.

Figure shows :

a)

High Elastic Demand

b)

Perfectly Elastic Demand

c)

Perfectly Inelastic Demand

d)

. Inelastic Demand

7.

Price elasticity of demand has classified

a)

Three

b)

Four

c)

Five

d)

Six

8.

Which of the following shows elasticity less than one ?

a)

Necessity Goods

b)

Comfort Goods

c)

Luxuries Goods

d)

.All of these

9.

For luxury goods the demand is :

a)

Inelastic

b)

Elastic

c)

Highly elastic

d)

None of these

10.

The price elasticity of demand can range between :

a)

negative one and one

b)

zero and infinity

c)

zero and one

d)

negative infinity and infinity

11.

Perfectly elastic demand curve is parallel to ...............axis.

a)

X

b)

Y

12.

Perfectly inelastic demand curve is parallel to ...............axis.

a)

X

b)

Y

13.

When Total expenditure remains constant with increase or decrease in price, elasticity of demand is :

a)

Less than one

b)

Greater than one

c)

One

d)

Infinity

14.

For normal goods, law of Demand states the …………. relationship between price and quantity of goods :

a)

Direct

b)

Positive

c)

Inverse

d)

None of these

15.

Law of Demand is a :

a)

Qualitative statement

b)

Quantitative statement

c)

Both (i) and (ii)

d)

None of these

Price Elasticity of Demand Quiz-1

Total questions: 15

Worksheet time: 1hrs 15mins

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