Home→ Economics Mcqs → Elasticity →If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?

If the income elasticity of demand for a good is negative it must be ?
If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?
Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
A decrease in supply (shift to the left) will increase total revenue in that market if ?
If a supply curve for a good is price elastic then ?
The demand for which of the following is likely to be the most price inelastic ?
in general a flatter demand curve is more likely to be ?
The price elasticity of demand is defined as ?
If consumers think that there are very few substitutes for a good, then ?
If demand is linear (a straight line) then price elasticity of demand is ?
Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?
Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?
If supply is price inelastic the value of the price elasticity of supply must be ?
If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ?
If an increase in the price of a good has no impact on the total revenue in that market demand must be ?
If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ?
If the cross-price elasticity between two goods is negative the two goods are likely to be ?
Which of the following would cause a demand curve for a good to be price inelastic ?
in general a flatter demand curve is more likely to be ?

If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?

A. income inelastic
B. price inelastic
C. price elastic
D. unit price elastic

Correct Answer: price elastic ✔

Last Updated: June 11, 2019