A measurement showing how quantity demanded varies with income is the ?

Related Mcqs:

1. Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

   A. Demand is price inelastic
   B. The good is inferior
   C. Income elasticity is -2
   D. The product is normal

2. Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?

   A. market prices
   B. sticky prices
   C. fixed prices
   D. regulatory prices

3. If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?

   A. change in a certain direction
   B. remain constant
   C. fall
   D. rise

4. If an increase in a consumer’s income causes the consumers to decrease her quantity demanded of a good, then the good is ?

   A. a substitute good
   B. a normal good
   C. a complementary good
   D. an inferior good

5. The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ____________?

   A. elastic
   B. perfectly elastic
   C. unitarily elastic
   D. inelastic.

6. 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

7. 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

8. The quantity demanded of Pepsi has decreased. The best explanation for this is that ?

   A. Pepsi’s advertising is not as effective as in the past .
   B. The price of Coca Cola has increased,
   C. Pepsi consumers had an increase in income.
   D. The price of Pepsi increased

9. The price of apples falls by 5% and quantity demanded increases by 6% This means that demand is ?

   A. zero elastic
   B. elastic
   C. perfectly elastic
   D. inelastic

10. The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

    A. The price elasticity of demand is -2
    B. The good is inferior
    C. Income elasticity is + 0.5
    D. Income elasticity is + 2