A. 550 units
B. 500 units
C. 450 units
D. 490 units
Related Mcqs:
- 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 - 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 - 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 - 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 - 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 - 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 - 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 - Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?
A. sell 4 million pounds of tin
B. sell 8 million pounds of tin
C. buy 4 million pounds of tin
D. buy 8 million pounds of tin - Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?
A. sell 4 million pounds of tin
B. sell 8 million pounds of tin
C. buy 4 million pounds of tin
D. buy 8 million pounds of tin - 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.
