If a good is a luxury, its income elasticity of demand is.
Positive and less than 1
Negative but greater than 1
Positive and greater than 1
Zero
In case of demand, a slight change in the price will make greater changes in demand
Perfectly elastic
Perfectly inelastic
Elastic
Inelastic
If the demand of the commodity changes at faster rates than change in the price of the commodity, the demand of the commodity will be known as
The price elasticity of demand is defined as the absolute value of the ratio of
Price over quantity demanded.
Change in price over change in quantity demanded.
Percentage change in price over the percentage change in quantity demanded.
Percentage change in quantity demanded over the percentage change in price.
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
Revenues from the sale of a good will decrease if
Income increases and the good is normal
The price rises and demand is elastic
The price rises and demand is inelastic
Income falls and the good is interior
If demand is price elastic, then:
A rise in price will raise total revenue
A fall in price will raise total revenue
A fall in price will lower the quantity demanded.
A rise in price won't have any effect on total revenues.
A infinite news paper publisher decides to cut price in order to raise circulation and revenue. This policy is more likely to be successful when demand for the newspaper is which one of the following?
Relatively inelastic
Unit elastic
Relatively elastic
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.
The demand will be _____ if there is no change in the demand of the commodity inspite of the change in the price of the commodity.
