Worksheetsfactor affecting Elasticity of Demand
Total questions: 14
Worksheet time: 7mins
What type of goods has relatively inelastic demand?
Luxury goods
Comfort goods
Necessaries
Multi-use goods
Which factor makes demand for a commodity more elastic?
Urgency of needs
Availability of close substitutes
High income of consumers
Durability of goods
What type of goods typically has more elastic demand?
Single use goods
Multi-use goods
Addicted goods
Necessaries
Which of the following is an example of a durable good?
Textbooks
Washing machine
Vegetables
Milk
What happens to the demand for complementary goods when the price of one falls?
Demand for both falls
Demand for both rises
Demand for the other rises
Demand remains unchanged
How does the urgency of needs affect demand elasticity?
More urgent needs lead to elastic demand
Urgent needs have no effect on demand
Less urgent needs lead to inelastic demand
Urgent needs lead to inelastic demand
What is the relationship between time period and elasticity of demand?
Time period has no effect on elasticity
Longer periods lead to less elasticity
Longer periods lead to more elasticity
Shorter periods lead to more elasticity
Which of the following goods is likely to have inelastic demand due to habit?
Perfumes
Drugs
Furniture
Cars
If a good takes up a large proportion of a person's income, how is its demand likely to behave?
Relatively inelastic
Completely inelastic
Relatively elastic
Perfectly elastic
Which of the following is an example of a good with inelastic demand?
Sugarcane juice
Lemon juice
Coal
Salt
What type of goods typically has inelastic demand due to their nature?
Comfort goods
Multi-use goods
Luxury goods
Necessaries
Which of the following factors does NOT affect the elasticity of demand?
Availability of substitutes
Number of uses
Consumer's income
Brand popularity
What is the effect of high consumer income on demand elasticity?
Makes demand perfectly elastic
Makes demand less elastic
Has no effect
Makes demand more elastic
Which of the following is an example of a perishable good?
Milk
Washing machine
Furniture
Textbooks
