Elasticity of Demand
Economics ⇒ Consumer and Producer Behaviour
Elasticity of Demand starts at 11 and continues till grade 12.
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Define price elasticity of demand.
Describe the point method of measuring price elasticity of demand.
Explain how the availability of close substitutes affects the price elasticity of demand for a product.
Explain the difference between perfectly elastic and perfectly inelastic demand.
Explain the importance of elasticity of demand for a business firm.
Explain the relationship between price elasticity of demand and total revenue.
If the price of a commodity increases from ₹10 to ₹12 and its quantity demanded falls from 100 units to 80 units, calculate the price elasticity of demand using the percentage method.
If the price of a good falls from ₹50 to ₹45 and the quantity demanded increases from 200 units to 220 units, calculate the price elasticity of demand using the arc method.
If the demand curve is a straight line parallel to the Y-axis, the price elasticity of demand is (1) Zero (2) Infinite (3) One (4) Greater than one
Which method of measuring price elasticity of demand uses the mid-point formula? (1) Percentage method (2) Total expenditure method (3) Arc method (4) Point method
Which of the following goods is likely to have negative income elasticity of demand? (1) Rice (2) Air conditioners (3) Coarse cereals (4) Mobile phones
Which of the following goods is likely to have the most inelastic demand? (1) Salt (2) Ice cream (3) Shoes (4) Chocolates
Fill in the blank: If the price elasticity of demand is less than 1, demand is said to be ________.
Fill in the blank: The price elasticity of demand for a commodity is ________ if a small change in price leads to a large change in quantity demanded.
Fill in the blank: The price elasticity of demand for a commodity is ________ when the demand curve is parallel to the X-axis.
Fill in the blank: The price elasticity of demand for a commodity is generally ________ if it is a necessity.
State whether the following statement is true or false: The price elasticity of demand for a commodity is the same at all points on a straight-line demand curve.
State whether the following statement is true or false: The price elasticity of demand for luxury goods is generally greater than 1.
True or False: If the price elasticity of demand is greater than 1, demand is said to be elastic.
True or False: Necessities tend to have inelastic demand.
