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 vertical demand curve has
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
The price elasticity of demand generally tends to be:
Smaller in the long tun than in the shot run
Smaller in the short run than in the long run
Un related to the length of time
Larger in the short run than in the long run.
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.
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
Perfectly elastic
Inelastic
Perfectly inelastic
Elastic
In figure, a unit elastic demand curve is shown by
a
b
c
d
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
If the price elasticity of demand for a good is. 75, the demand for the good can be described as:
Normal
Inferior
If change in the demand of the commodity is proportionate to change in price, the demand of the commodity will be
Less than unit elasticity
In case of demand, a slight change in the price will make greater changes in demand
