A. Changes in price caused by changes in demand
B. The rate of change of sales
C. The responsiveness of demand to price changes
D. The value of sales at a given price
Related Mcqs:
- 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 ?
A. 1.4
B. 0.66
C. 0.75
D. 2.0 - If demand is linear (a straight line) then price elasticity of demand is ?
A. elastic in the upper portion and inelastic in the lower portion
B. inelastic in the upper portion and elastic in the lower portion
C. inelastic throughout
D. constant along the demand curve - If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ?
A. -4
B. 0.25
C. 4
D. -0.25 - If the price elasticity of demand is unit then a fall in price ?
A. Reduces revenue
B. Leaves revenue unchanged
C. Increase revenue
D. Reduces costs - Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
A. 550 units
B. 500 units
C. 450 units
D. 490 units - If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
A. The higher price in market A
B. The higher price in market B
C. The same Price in both markets
D. Cannot tell which price will be higher - In food demand growth equation D = Φ + a E, a is the income elasticity of demand for food E is the per capita income growth and Φ is ?
A. Poverty rates
B. food security index
C. change in the quantity of food demanded per capita
D. population growth - The kinked demand curve model of oligopoly assumes the elasticity of demand ?
A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease - The price elasticity of demand is the ?
A. ratio of the change in price to the change in quantity demanded.
B. ratio of the percentage change in quantity demanded to the percentage change in price.
C. ratio of the change in quantity demanded to the change in price.
D. ratio of the percentage change in price to the percentage change in quantity demanded. - Evidence suggests that the price elasticity of demand for motoring is ?
A. absolutely inelastic
B. Unitarily elastic
C. Elastic
D. inelastic
