Elasticity MCQs

Option A: an elastic good

Option B: an inferior good

Option C: a normal good

Option D: a luxury good

Correct Answer: an inferior good ✔

Option A: price inelastic

Option B: none of these

Option C: unit price elastic

Option D: price elastic

Correct Answer: price elastic ✔

Option A: increase total revenue to farmers as a whole because the demand for food is elastic

Option B: increase total revenue to farmers as whole because the demand for food is inelastic

Option C: reduce total revenue to farmers as a whole because the demand for food is elastic

Option D: reduce total revenue to farmers as a whole because the demand for food is inelastic

Correct Answer: reduce total revenue to farmers as a whole because the demand for food is inelastic ✔

Option A: demand is price inelastic

Option B: supply is price elastic

Option C: supply is price inelastic

Option D: demand is price elastic

Correct Answer: demand is price inelastic ✔

Option A: the quantity supplied is sensitive to changes in the price of that good

Option B: That quantity demanded is insensitive to changes in the price of that good

Option C: the quantity demanded is sensitive to changes in the price of that good

Option D: the quantity supplied is incentive to changes in the price of that good

Correct Answer: the quantity supplied is sensitive to changes in the price of that good ✔

Option A: transportation

Option B: taxi rides

Option C: bus tickets

Option D: airline tickets

Correct Answer: transportation ✔

Option A: price elastic

Option B: none of these answers

Option C: unit price elastic

Option D: price inelastic

Correct Answer: price inelastic ✔

Option A: the percentage change in the quantity demanded divided by the percentage change in income.

Option B: the percentage change in income divided by the percentage change in the quantity demanded

Option C: the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good

Option D: none of these answers

Correct Answer: the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good ✔

Option A: Supply would tend to be price elastic

Option B: none of these answers

Option C: demand would tend to be price inelastic

Option D: demand would tend to be price elastic

Correct Answer: demand would tend to be price inelastic ✔

Option A: elastic in the upper portion and inelastic in the lower portion

Option B: inelastic in the upper portion and elastic in the lower portion

Option C: inelastic throughout

Option D: constant along the demand curve

Correct Answer: elastic in the upper portion and inelastic in the lower portion ✔

Option A: Rs 0 per month

Option B: Rs 30 per month

Option C: Rs 40 per month

Option D: Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0

Correct Answer: Rs 30 per month ✔

Option A: 1.4

Option B: 0.66

Option C: 0.75

Option D: 2.0

Correct Answer: 1.4 ✔

Option A: infinite

Option B: Zero

Option C: less than 1

Option D: none of these

Correct Answer: less than 1 ✔

Option A: 1.50

Option B: 1.15

Option C: none of these

Option D: 0.15

Correct Answer: 1.00 ✔

Option A: all of these answers

Option B: price inelastic

Option C: unit price elastic

Option D: price elastic

Correct Answer: unit price elastic ✔

Option A: zero

Option B: infinite

Option C: one

Option D: unable to be determined form this information

Correct Answer: zero ✔

Option A: substitutes

Option B: complements

Option C: necessities

Option D: luxuries

Correct Answer: complements ✔

Option A: The good is luxury

Option B: There are a great number of substitutes for the good

Option C: The good is a necessity

Option D: The good is an inferior good

Correct Answer: The good is a necessity ✔

Option A: price elastic

Option B: unit price elastic

Option C: none of these answers

Option D: price inelastic

Correct Answer: price elastic ✔

Option A: income inelastic

Option B: price inelastic

Option C: price elastic

Option D: unit price elastic

Correct Answer: price elastic ✔