A virtual demand curve has :
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
__________ is a measure of the responsiveness of demand for one good to a change in the price of another good and involves demand curve shifts .
Cross price elasticity of demand (XED)
Price elasticity of demand (PED)
Unit elesticity of demand
Price elasticity of supply
If demand is price elastic :
A 1 percent decrease in the price leads to increase in the quantity demanded that exceeds 1 percent .
A 1 percent increase in the price leads to an decrease in the quantity demanded that exceeds 1 percent
The price is very sensitive so any shift the supply curve .
A 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent
__________ is a measure of the responsiveness of demand to changes in income and involves demand curve shift .
Income elasticity of demand (YED)
Cross elasticity of demand( XED)
Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another goods .
Price elasticity
Income elasticity
Cross elasticity
None of these
Unit elastic demand :
Means that the ratio of change in the quantity demanded to a change in the price equals 1
Means that the ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1
Will be vertical
Will be horizontal
The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of
Its substitute and its complements .
Its substitute but not its complements .
It complements but not its substitutes
According to the law of demand , there is ________ relationship between price and quantity demand .
Positive
Negative
Inverse
Direct
__________ are not necessary essential .
Necessities
Luxuries
Complementary
Giffen goods
Demand will be more elastic ,
The higher the income
The lower the price
The shorter the passage of time after a permanent price increase
The more substitutes available for the good
