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With a change in the price, if the quantity of a commodity demanded remains the same, the coefficient of price elasticity of demand is:

Equal to 1

Less than 1

Greater than 1

Zero

Infinite

/

I only

III only

I and IV

III and IV

I and III

If the demand curve becomes parallel to the quantity axis, the price elasticity of demand is:

Equal to 1

Less than 1

Greater than 1

Zero

Infinite

The method to measure Cross Elasticity of Demand is:

Percentage change in the Price of Commodity X divided by Percentage change in Quantity demanded of Commodity Y

Percentage change in the Quantity of Commodity demanded divided by Percentage change in its Price

Percentage change in the quantity demanded of commodity X divided by the percentage change in quantity demanded of commodity Y

Percentage change in the quantity demanded of commodity X divided by percentage change in price of commodity Y

Percentage change in the price of commodity Y divided by percentage change in quantity demanded of commodity X

If a Percentage change in Quantity Demanded is greater than the Percentage change in Price, the Elasticity of Demand is:

Perfectly Elastic

Unitary Elastic

Elastic

Inelastic

Perfectly Inelastic

If the Price of a commodity changes from $16 to $12, the Quantity Demanded changes from 30 to 60 units, the Elasticity of Demand is:

0.5

4

8

2.6

-4

Negative Cross-Elasticity of Commodity X with respect to the Price of a related Commodity Y implies that:

Commodity X is expensive than Commodity Y

Commodity Y is expensive than Commodity X

Commodity X and Commodity Y are substitutes of each other.

Both Commodities X and Y are complementary to each other.

Both Commodities X and Y have the same price.

/

Only I

Only II

Only III

I and II

I and III

The Economist associated with the development of the Theory of Elasticity of Demand is:

Boulding

Alfred Marshall

Lipsey

Watson

Samuelson

The Arc Elasticity of Demand for a commodity, of which the Quantities demanded are Q1 and Q2 for the prices P1 and P2, is:

Q1+Q2 x P2-P1 P1+P2 Q2-Q1

Q1+Q2 x Q2-Q1 P1+P2 P2-P1

Q1-Q2 x P1+P2 Q1+Q2 P2-P1

Q1-Q2 x P1-P2 Q1+Q2 P2+P1

Q1-Q2 x P2-P1 Q1+Q2 P2+P1

Equal to 1

Less than 1

Greater than 1

Zero

Infinite

/

I only

III only

I and IV

III and IV

I and III

If the demand curve becomes parallel to the quantity axis, the price elasticity of demand is:

Equal to 1

Less than 1

Greater than 1

Zero

Infinite

The method to measure Cross Elasticity of Demand is:

Percentage change in the Price of Commodity X divided by Percentage change in Quantity demanded of Commodity Y

Percentage change in the Quantity of Commodity demanded divided by Percentage change in its Price

Percentage change in the quantity demanded of commodity X divided by the percentage change in quantity demanded of commodity Y

Percentage change in the quantity demanded of commodity X divided by percentage change in price of commodity Y

Percentage change in the price of commodity Y divided by percentage change in quantity demanded of commodity X

If a Percentage change in Quantity Demanded is greater than the Percentage change in Price, the Elasticity of Demand is:

Perfectly Elastic

Unitary Elastic

Elastic

Inelastic

Perfectly Inelastic

If the Price of a commodity changes from $16 to $12, the Quantity Demanded changes from 30 to 60 units, the Elasticity of Demand is:

0.5

4

8

2.6

-4

Negative Cross-Elasticity of Commodity X with respect to the Price of a related Commodity Y implies that:

Commodity X is expensive than Commodity Y

Commodity Y is expensive than Commodity X

Commodity X and Commodity Y are substitutes of each other.

Both Commodities X and Y are complementary to each other.

Both Commodities X and Y have the same price.

/

Only I

Only II

Only III

I and II

I and III

The Economist associated with the development of the Theory of Elasticity of Demand is:

Boulding

Alfred Marshall

Lipsey

Watson

Samuelson

The Arc Elasticity of Demand for a commodity, of which the Quantities demanded are Q1 and Q2 for the prices P1 and P2, is:

Q1+Q2 x P2-P1 P1+P2 Q2-Q1

Q1+Q2 x Q2-Q1 P1+P2 P2-P1

Q1-Q2 x P1+P2 Q1+Q2 P2-P1

Q1-Q2 x P1-P2 Q1+Q2 P2+P1

Q1-Q2 x P2-P1 Q1+Q2 P2+P1

This is a short test on the concept of Elasticity of Demand. A student preparing for AP Microeconomics, will find this test very helpful for understanding and revising Elasticity, Price Elasticity, Income Elasticity and Cross Elasticity.

Elasticity of Demand Demand Theory of Demand Elasticity Price Elasticity of Demand Income Elasticity of Demand Cross Elasticity of Demand Determinants of Elasticity Microeconomics Microeconomics AP AP Microeconomics Economics Economics AP AP Economics AP MCQ

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