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
A vertical demand curve has
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
In case of demand, a slight change in the price will make greater changes in demand
Perfectly elastic
Perfectly inelastic
Elastic
Inelastic
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 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.
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
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.
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 change in the demand of the commodity is proportionate to change in price, the demand of the commodity will be
Less than unit elasticity
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
