If change in the demand of the commodity is proportionate to change in price, the demand of the commodity will be
Unit elasticity
Less than unit elasticity
Perfectly elastic
Perfectly inelastic
Under which one of the following circumstances will the firm have to absorb all the increase in indirect tax itself, being unable to pass on any of it to the consumer?
Perfectly inelastic demand
Perfectly elastic demand
Unit elastic demand
Relatively elastic demand
It is a case of ______ if demand of the commodity changes with the change in price.
Income elasticity
Price elasticity
Cross elasticity
All the above
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
Inelastic
Elastic
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.
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.
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
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
Cross elasticity of demand is
Negative for complementary goods
Negative for substitute goods
Unitary for inferior goods
Positive for inferior goods
A vertical demand curve has
Infinite elasticity
Zero elasticity
Varying elasticity
