MCQs of Economics – 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

The price elasticity of demand is defined as:

in general a flatter demand curve is more likely to be:

in general a flatter demand curve is more likely to be

Which of the following would cause a demand curve for a good to be price inelastic?

The demand for which of the following is likely to be the most price inelastic?

If the cross-price elasticity between two goods is negative the two goods are likely to be

If a supply curve for a good is price elastic then

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

A decrease in supply (shift to the left) will increase total revenue in that market if

If an increase in the price of a good has no impact on the total revenue in that market demand must be

If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is

Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to:

If supply is price inelastic the value of the price elasticity of supply must be

If there is excess capacity in a production facility it is likely that the firm’s supply curve 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 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?

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?

If demand is linear (a straight line) then price elasticity of demand is

If the income elasticity of demand for a good is negative it must be

If consumers think that there are very few substitutes for a good, then