What are the three factors that affect price elasticity of supply?

What are the three factors that affect price elasticity of supply?
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What is the factors that affect determinants of price elasticity of demand?

Description : What is the factors that affect determinants of price elasticity of demand?

Last Answer : Need answer

If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be - (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity

Description : If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be - (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity

Last Answer : (4) equal to unity Explanation: Any straight line supply curve passing through the origin has an elasticity of supply equal to 1. The different types of price elasticity of supply are listed below:

A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Description : A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Last Answer : (2) decreases the price of that commodity Explanation: The four basic laws of supply and demand are: (1) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher ... (4) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.

If a dealer is prepared to supply 1000 sets of a 29” Color TV if the price is `12,000 per set, however if the price raises to `15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of TV set is (a) 1 ; (b) 2 ; (c) 0.75 ; (d) 1.4

Description : If a dealer is prepared to supply 1000 sets of a 29” Color TV if the price is `12,000 per set, however if the price raises to `15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of TV set is (a) 1 ; (b) 2 ; (c) 0.75 ; (d) 1.4

Last Answer : (b) 2 ;

Supply curve passing through any point on Y axis(Price) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero

Description : Supply curve passing through any point on Y axis(Price) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero

Last Answer :  (b) More than 1

If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity

Description : If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity

Last Answer : equal to unity

A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity

Description : A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity

Last Answer : decreases the price of that commodity

Elasticity of supply depends upon (a) Nature of the commodity ; (b) Production technology ; (c) Future outlook of prices (d) All the three

Description : Elasticity of supply depends upon (a) Nature of the commodity ; (b) Production technology ; (c) Future outlook of prices (d) All the three

Last Answer : (d) All the three

What two factors affect demand and 4 factors that affect supply?

Description : What two factors affect demand and 4 factors that affect supply?

Last Answer : What is the answer ?

What are the factors that affect the money supply?

Description : What are the factors that affect the money supply?

Last Answer : The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The ... banking system does not control the shadow banking system, so therefore there are no reserve requirements.

If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Description : If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Last Answer : (3) low elasticity of demand Explanation: The Ramsey rule states that commodities with low elasticities of demand should be taxed at higher rates than commodities with high elasticities of demand. ... the Ramsey rule may result in a regressive taxation scheme society may view as inequitable.

Very short period is the market condition where the supply remain perfectly (a) Elastic ; (b) Inelastic ; (c) Unity elastic ; (d) Elasticity less than 1

Description : Very short period is the market condition where the supply remain perfectly (a) Elastic ; (b) Inelastic ; (c) Unity elastic ; (d) Elasticity less than 1

Last Answer : (b) Inelastic ; 

In question No. 201 if at `15,000, the dealer is prepared to supply on 1100 TV sets, the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.4 ; (d) 1.5

Description : In question No. 201 if at `15,000, the dealer is prepared to supply on 1100 TV sets, the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.4 ; (d) 1.5

Last Answer : ; (c) 0.4 ;

In question No. 201 if at `15,000, the dealer is prepared to supply on 1250 sets of TV the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.75 ; (d) 1.4

Description : In question No. 201 if at `15,000, the dealer is prepared to supply on 1250 sets of TV the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.75 ; (d) 1.4

Last Answer : (a) 1 ;

A supply curve passing through any point on X axis(quantity) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just one ; (d) Zero

Description : A supply curve passing through any point on X axis(quantity) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just one ; (d) Zero 

Last Answer : (a) Less than 1 ;

A supply curve passing through the origin will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero

Description : A supply curve passing through the origin will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero 

Last Answer : (c) Just One ; 

If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Description : If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand

Last Answer : low elasticity of demand

In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and supply forces in the market (3) the private-sector takes all the decisions for price-determination of various commodities produced (4) the Government controls the allocation of all the factors of production

Description : In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and ... of various commodities produced (4) the Government controls the allocation of all the factors of production

Last Answer : the Government does not interfere in the free functioning of demand and supply forces in the market

How does the elasticity of a medium affect the speed of a wave?

Description : How does the elasticity of a medium affect the speed of a wave?

Last Answer : Need answer

What factor does not affect the elasticity of a demand for a good?

Description : What factor does not affect the elasticity of a demand for a good?

Last Answer : Increase in the population.

Which of the following does not affect the elasticity of retentive clasp? A. Length of the arm B. The cross section shape C. The material used D. The undercut area

Description : Which of the following does not affect the elasticity of retentive clasp? A. Length of the arm B. The cross section shape C. The material used D. The undercut area

Last Answer : D. The undercut area

Price Elasticity of Demand?

Description : Price Elasticity of Demand?

Last Answer : When the price of something you're used to paying for increases do you buy less of it? Or if the price suddenly drops do you buy more of it? Economists call this effect the price elasticity of demand. ... a good may be price inelastic in the short run, it may well become elastic in the long run.

What is cross price elasticity?

Description : What is cross price elasticity?

Last Answer : Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.

Elasticity of demand is the degree of responsiveness of demand of a commodity to a - (1) change in consumers' wealth (2) change in the price of substitutes (3) change in consumers' tastes (4) change in its price

Description : Elasticity of demand is the degree of responsiveness of demand of a commodity to a - (1) change in consumers' wealth (2) change in the price of substitutes (3) change in consumers' tastes (4) change in its price

Last Answer : (4) change in its price Explanation: The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of demand to change in price. Its measure depends upon comparing ... demand is the ratio of percentage change in amount demanded to a percent-age change in price.

Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a (1) change in the price of the goods (2) change in the price of substitutes (3) change in the price of the complements (4) change in the price of joint products

Description : Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a (1) change in the price of the goods (2) change in the price of substitutes (3) change in the price of the complements (4) change in the price of joint products

Last Answer : (1) change in the price of the goods Explanation: Price elasticity of demand is a measure of responsiveness of the quantity of a good or service demanded to changes in its price. This measure of ... good with respect to the change in the price of some other good, a complementary or substitute good.

If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good

Description : If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good

Last Answer : (1) giffen good Explanation: A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It ... rises, violating the law of demand. When price goes up, the quantity demanded also goes up.

A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to - (1) Zero (2) One (3) Less than one (4) Infinity

Description : A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to - (1) Zero (2) One (3) Less than one (4) Infinity

Last Answer : (4) Infinity Explanation: Price elasticity of demand measures consumer response to price changes. If consumers are relatively sensitive to price changes, demand is elastic: if they are relatively ... keeps changing with the price. So the coefficient of price elasticity of demand is infinity.

The price elasticity of demand is the: a. percentage change in quantity demanded divided by the percentage change in price b. percentage change in price divided by the percentage change in quantity demanded c. dollar change in quantity demanded divided by the dollar change in price d. percentage change in quantity demanded divided by the percentage change in quantity supplied

Description : The price elasticity of demand is the: a. percentage change in quantity demanded divided by the percentage change in price b. percentage change in price divided by the percentage change in ... in price d. percentage change in quantity demanded divided by the percentage change in quantity supplied

Last Answer : a. percentage change in quantity demanded divided by the percentage change in price

Elasticity of demand measures the A.Sensitivity of sales to changes in a particular causal factor B.Sensitivity of production to changes in a particular cost C.Value of price and cost D.Volume of product

Description : Elasticity of demand measures the A.Sensitivity of sales to changes in a particular causal factor B.Sensitivity of production to changes in a particular cost C.Value of price and cost D.Volume of product

Last Answer : A.Sensitivity of sales to changes in a particular causal factor

Price elasticity of demand provides A.A measure of the responsiveness of the quantity demanded to changes in the price of the product, holding constant the values of all other variables in the demand function. B.A technical change in the goodwill of the firm C.A technical change in the cost of product D.Technical change in the value.

Description : Price elasticity of demand provides A.A measure of the responsiveness of the quantity demanded to changes in the price of the product, holding constant the values of all other variables in the demand function ... the firm C.A technical change in the cost of product D.Technical change in the value.

Last Answer : A.A measure of the responsiveness of the quantity demanded to changes in the price of the product, holding constant the values of all other variables in the demand function.

Epx = Percentage change in Qy / Percentage change in Px The above relationship is : A.Arc Cross Price Elasticity B.Cost Output C.Cost Profit D.Capital Budgeting

Description : Epx = Percentage change in Qy / Percentage change in Px The above relationship is : A.Arc Cross Price Elasticity B.Cost Output C.Cost Profit D.Capital Budgeting

Last Answer : A.Arc Cross Price Elasticity

Find out the price elasticity in the following example : Price Demand 5(P1) 10(Q1) 4(P2) 15(Q2) (a) – 2.5 (b) + 3.5 (c) + 4.0 (d) + 2.5

Description : Find out the price elasticity in the following example : Price Demand 5(P1) 10(Q1) 4(P2) 15(Q2) (a) – 2.5 (b) + 3.5 (c) + 4.0 (d) + 2.5

Last Answer : (a) – 2.5

Price discrimination will be profitable only if the elasticity of demand in different markets will be (a) uniform (b) less (c) zero (d) different

Description : Price discrimination will be profitable only if the elasticity of demand in different markets will be (a) uniform (b) less (c) zero (d) different

Last Answer : (d) different

In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite

Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite

Last Answer : (a) equal to zero

Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite

Description : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite

Last Answer : (b) positive

Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Last Answer : (b) price of that commodity

The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant

Description : The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant

Last Answer : (a) Increases at higher price ;

X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥

Description : X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥

Last Answer : (a) 1 ;

Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of Coffee rises to `400 per kg. the demand for Tea goes to 6 Kg. and that of Coffee falls to 1Kg. The elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3

Description : Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of ... elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3

Last Answer : (c) 5 ;

If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is (a) 0.45 ; (b) 0.25 ; (c) +0.44 ; (d) -0.30

Description : If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is (a) 0.45 ; (b) 0.25 ; (c) +0.44 ; (d) -0.30

Last Answer : (b) 0.25 ;

If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that (a) Cross price elasticity of demand is negative and both the products are complementary to each other; (b) Cross price elasticity of demand is negative and the goods are substitute; (c) Cross price elasticity is positive and the products are complementary to each other ; (d) None of these

Description : If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that (a) Cross price elasticity of demand is negative and both the products are complementary to each other ... price elasticity is positive and the products are complementary to each other ; (d) None of these 

Last Answer : (a) Cross price elasticity of demand is negative and both the products are complementary to each other;

If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated

Description : If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated 

Last Answer : (a) Complementary to each other ;

If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price (a) 19 increase ; (b) 19% decrease ; (c) 20.95% increase ; (d) 20.6% decrease

Description : If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price (a) 19 increase ; (b) 19% decrease ; (c) 20.95% increase ; (d) 20.6% decrease

Last Answer : (a) 19 increase ; 

If the price elasticity of a product is greater than 1, we can say that (a) The products demand is sensitive to price variation; (b) Product demand is insensitive to price variation; (c) Demand and price move in same directions ; (d) None of this

Description : If the price elasticity of a product is greater than 1, we can say that (a) The products demand is sensitive to price variation; (b) Product demand is insensitive to price variation; (c) Demand and price move in same directions ; (d) None of this

Last Answer : (a) The products demand is sensitive to price variation; 

Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits

Description : Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits

Last Answer : (c) Cost of production ;

The coefficient of price elasticity of demand is calculated as……….. (a) The change in price divided by the change in quantity demand (b) The percentage change in quantity demand by the percentage change in price (c) The change in quantity demanded by the change in price (d) The percentage change in price by the percentage change in demand

Description : The coefficient of price elasticity of demand is calculated as .. (a) The change in price divided by the change in quantity demand (b) The percentage change in quantity demand by the percentage ... by the change in price (d) The percentage change in price by the percentage change in demand

Last Answer : (b) The percentage change in quantity demand by the percentage change in price 

Point elasticity of demand can be useful in which of the following cases (a) A departmental store is thinking of increasing the price of gift packs (b) A service station is considering to lower the service charges (c) A health club is considering to lower the monthly membership fee (d) An airlines company is considering to lower holiday packages

Description : Point elasticity of demand can be useful in which of the following cases (a) A departmental store is thinking of increasing the price of gift packs (b) A service station is considering to ... to lower the monthly membership fee (d) An airlines company is considering to lower holiday packages

Last Answer : (c) A health club is considering to lower the monthly membership fee 

Omlet and cakes have (a) Negative cross price elasticity of demand ; (b) Positive cross elasticity of demand; (c) Positive income elasticity of demand ; (d) Negative income elasticity of demand

Description : Omlet and cakes have (a) Negative cross price elasticity of demand ; (b) Positive cross elasticity of demand; (c) Positive income elasticity of demand ; (d) Negative income elasticity of demand

Last Answer : (b) Positive cross elasticity of demand;

Bread and butter have……….. (a) Negative cross price elasticity of demand ; (b) Positive cross elasticity of demand (c) Positive income elasticity of demand ; (d) Negative income elasticity of demand

Description : Bread and butter have……….. (a) Negative cross price elasticity of demand ; (b) Positive cross elasticity of demand (c) Positive income elasticity of demand ; (d) Negative income elasticity of demand

Last Answer : (a) Negative cross price elasticity of demand ; 

Price elasticity demand of product will be more elastic if it (a) Has no substitutes ; (b) Has number of substitutes ; (c) Is an item of necessity; (d) Is life saving Product

Description : Price elasticity demand of product will be more elastic if it (a) Has no substitutes ; (b) Has number of substitutes ; (c) Is an item of necessity; (d) Is life saving Product

Last Answer : ; (b) Has number of substitutes ;