Question : When a good's demand is less elastic, a) Price change as a percentage of demand as a percentage of price change b) Change in the amount demanded as a percentage of price change c) Price change by percentage equals demand by percentage changed d) Demand is more steeply curved.
Option 1: A and B only
Option 2: B and C only
Option 3: A and D only
Option 4: All of the above
Correct Answer: A and D only
Solution : A demand or supply curve that is inelastic will result in a lesser percentage change in quantity demanded or supplied for a given change in price. In this case demand curve is steeper. Hence option c is the correct answer.
Question : The price elasticity of demand is calculated as the:
Question : Which of the following is an assumption made while drawing the demand curve a:The demand curve must be linear b:The price of substitutes should not change c: The quantity demanded should not change d: The price of the commodity should not
Question : The price elasticity of demand is calculated as the percentage change in:
Question : The quantity demanded of a good or service divided by the price change in percentage form the price elasticity of demand.
Question : EXCEPT for the one, the following are the causes of a shift in demand: A: Change in income B: Change in price C: Change in prices of substitutes D: Change in fashion
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