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Elasticity Mcqs Name:: A D D B

This document contains 10 multiple choice questions about elasticity concepts. The questions cover topics like price elasticity of demand, price elasticity of supply, income elasticity of demand, and the effects of substitutes and complements. The questions are testing understanding of key elasticity concepts and how the demand and supply curves would shift in response to changes in price, income, or other market factors.

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naqqi abbas
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111 views

Elasticity Mcqs Name:: A D D B

This document contains 10 multiple choice questions about elasticity concepts. The questions cover topics like price elasticity of demand, price elasticity of supply, income elasticity of demand, and the effects of substitutes and complements. The questions are testing understanding of key elasticity concepts and how the demand and supply curves would shift in response to changes in price, income, or other market factors.

Uploaded by

naqqi abbas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ELASTICITY MCQS NAME:

1 The demand for a commodity has unitary price elasticity. 5 The market for tractors is supplied by two firms, X and Y, each
Which diagram shows the relationship between total expenditure on the initially having 50 % of the market.
commodity and its price? A 10 % increase in the price of tractors leads to an increase in output
from firm X of 10 % and from firm Y of 20 %.
What is the price elasticity of supply of tractors in this market?
A1 B 1.5 C2 D3

6 Good X is a substitute for Good Y and a complement to Good Z.


What would be the effect of a fall in the price of Good X?
A Only the demand for X will rise.
B Demand for X, Y and Z will rise.
C Demand for Y will fall and for Z will rise.
D Demand for Y will rise and for Z will fall.

7 The market for tractors is supplied by two firms, X and Y, each


initially having 50 % of the market.
A 10 % increase in the price of tractors leads to an increase in output
from firm X of 10 % and from firm Y of 20 %.
2 The diagram shows four different straight line supply curves. What is the price elasticity of supply of tractors in this market?
A1 B 1.5 C2 D3

8 Good X is a substitute for Good Y and a complement to Good Z.


What would be the effect of a fall in the price of Good X?
A Only the demand for X will rise.
B Demand for X, Y and Z will rise.
C Demand for Y will fall and for Z will rise.
D Demand for Y will rise and for Z will fall.
3 The demand for a commodity has unitary price elasticity.
Which diagram shows the relationship between total expenditure on the 9 Assume that rice is a substitute for potatoes.
commodity and its price? If there is a decrease in the supply of potatoes, what is likely to happen
to the market for rice in the short run?
A Demand will decrease and the price will decrease.
B Demand will increase and the price will increase.
C Supply will decrease and the price will increase.
D Supply will increase and the price will decrease.

10 The table shows a consumer's expenditure on a range of goods at


different levels of income. For which good does the consumer have an
income elasticity of demand greater than zero, but less than one?

4 The diagram shows four different straight line supply curves.

ANS : 1A 2 3A 4 5 6D 7 8D 9 10 B

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