If the price elasticity is -0.3 this means ?

Related Mcqs:

1. 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

2. 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

3. 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

4. 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

5. 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

6. An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

   A. +2
   B. +0.5
   C. -2
   D. -0.5

7. The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now ?

   A. 80 units
   B. 320 units
   C. 60 units
   D. 120 units

8. If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ?

   A. zero
   B. infinite
   C. one
   D. unable to be determined form this information

9. If supply is price inelastic the value of the price elasticity of supply must be ?

   A. infinite
   B. Zero
   C. less than 1
   D. none of these
   E. greater than 1

10. The price elasticity of demand is a negative number this means ?

    A. Demand is price elastic
    B. Demand is price inelastic
    C. The demand curve is downward sloping
    D. An increase in income will reduce the quantity demanded