Description : Cross elasticity of complementary products will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
Last Answer : (d) < 0
Description : Cross elasticity of a nearly perfect substitute products will be (a) Infinite ; (b) Zero ; (c) .> 1 ; (d)
Last Answer : (a) Infinite ;
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 ;
Description : If the cross elasticity between two products is positive then we can say that (a) The products are perfectly substitute of each other; (b) The products are complementary to each other; (c) Both the products are unrelated ; (d) Both are luxury items
Last Answer : (a) The products are perfectly substitute of each other;
Description : If two goods are not substitutes at all for one another, the elasticity of substitution will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
Last Answer : ; (b) Zero ;
Description : If two goods are perfect substitutes for one another, the elasticity of substitution will be (a) Infinite ; (b) Zero ; (c) > 1 ; (d) < 0
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;
Description : Goods which are perfect substitute of each other will have elasticity of substitution…... (a) Unity ; (b) Less than 1 ; (c) More than 1 ; (d) Infinite
Last Answer : ; (d) Infinite
Description : The cross elasticity of substitute goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) > 0
Last Answer : (d) > 0
Description : The cross elasticity of complementary goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) = 0
Last Answer : (c) < 0 ;
Description : If prices of Eggs rises from `25 per dozen to `30 per dozen, the demand for vegetable burger increases from 30 per day to 40 per day, then the cross elasticity of eggs and vegetable burger is (a) 1.5 ; (b) 1.25 ; (c) 1.65 ; (d) 1.86
Last Answer : (c) 1.65 ;
Description : If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is (a) 1.5 ; (b) 1.25 ; (c) 1.0 ; (d) 1.59
Last Answer : (b) 1.25 ;
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;
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 ;
Description : Which of the following is not a type of elasticity in economics………………… (a) Income elasticity ; (b) Price elasticity ; (c) Utility elasticity ; (d) Cross elasticity
Last Answer : (c) Utility elasticity ;
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
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 ;
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 ;
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;
Description : Cross elasticity of demand between petrol and car is - (1) infinite (2) positive (3) zero (4) negative
Last Answer : (4) negative Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the ... denotes two products that are complements, while a positive cross elasticity denotes two substitute products
Description : In case of Complementary goods cross elasticity of demand will be (a) Negative (b) Zero (c) Unitary (d) Infinite
Last Answer : (a) Negative
Description : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite
Last Answer : (b) positive
Description : Cross elasticity of demand between petrol and car is (1) infinite (2) positive (3) zero (4) negative
Last Answer : negative
Description : Tea and coffee are (a) Complementary goods ; (b) Alternative goods ; (c) Unrelated goods ; (d) None of these
Last Answer : (b) Alternative goods ;
Description : Sugar and tea are …………… goods (a) Complementary ; (b) Prefect substitute of each other ; (c) Both ; (d) Unrelated
Last Answer : (a) Complementary ;
Description : Complementary goods are those which are …………… (a) Consumed simultaneously ; (b) Close competitive ; (c) Both ; (d) Unrelated
Last Answer : (a) Consumed simultaneously ;
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 ;
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 ;
Description : The income elasticity of demand of normal goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) > 0
Last Answer : ; (d) > 0
Description : The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0
Description : If the disposal income of a household decreases by 10% and the demand for X commodity remains same. The income elasticity of X is (a) 0 ; (b) 0.5 ; (c) 0.5 ; (d) 2.5
Last Answer : (a) 0 ;
Description : If the disposal income of a household increases by 10% and the demand for X commodity increased by 10% the income elasticity of X is (a) 1.5 ; (b) 0.5 ; (c) 1.5 ; (d) 1.0
Last Answer : (d) 1.0
Description : If the disposal income of a household increases by 10% and the demand for X commodity increased by 25%. The income elasticity of X is (a) 1.5 ; (b) -0.5 ; (c) 2.5 ; (d) -2.5
Last Answer : ; (c) 2.5 ;
Description : If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0
Last Answer : (b) -0.5 ;
Description : If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 5 ; (d) 1
Last Answer : (c) 5 ;
Description : An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 3 ; (d) 1
Last Answer : ; (c) 3 ;
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 ;
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
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 ;
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
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 ;
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
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 ;
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 ;
Description : Luxury goods have --- -- degree of elasticity (a) High ; (b) Low ; (c) Moderate ; (d) Completely inelastic
Last Answer : (a) High ;
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 ;
Description : Point elasticity concept was propounded by (a) Marshal ; (b) Lipsey ; (c) Hicks ; (d) Samulson
Last Answer : (a) Marshal ;
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
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
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 ;