MCQs Micro Economics in English, Elasticity of Demand

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Micro Economics    

Elasticity of Demand

The general reason for higher elasticity of demand for something is

change in the value of money	change in income
change in price	all

The elasticity of demand for necessities:

equal to unit	less than unit
more than unit	none

The elasticity for luxury items is usually.

less than unit	more than unit
equal to unit	all

Income elasticity of demand is related to.

income	money
price	none

Price elasticity of demand may be.

less than unit	equal to a unit
more than unit	all

Income elasticity of an item can be.

less than unit	equals to unit
more than units	all

Elasticity due to fashion, climate and changes income etc. can be.

less than unit	more than unit
equal to unit	all

Cross elasticity is concerned to.

rare items	drugs
anyone	none

 

Cross elasticity is concerned to.

essentials	substitutes
both	none

These are the degrees of elasticity of demand.

E> 1	E <1
E = 1	All

Demand elasticity is measured by the method.

total expenditure method	percentage formula
geometrical method	all

Is important factor in determining elasticity of demand by expenditure method.

cost	expenses
income	all

The elasticity of demand at the midpoint of a curve is.

less than one unit	more than one unit
equal to zero	equal to unit

If a point on a demand curve is slightly higher than the middle point, elasticity will be.

less than unit	greater than unit
equal to unit	none

If a point on a demand line is slightly lower than the middle point, elasticity will be.

equal to unit	more than unit
less than unit	all

Elasticity of bread and milk may be----- than that of mobile phones.

equal	more
less	all