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
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is
Unity
A vertical demand curve has
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
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
Change in the demand of a commodity due to change in the price of the substitute is an example of
Cross elasticity
Price elasticity
Income elasticity
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 figure, a unit elastic demand curve is shown by
a
b
c
d
Cross elasticity of demand is
Negative for complementary goods
Negative for substitute goods
Unitary for inferior goods
Positive for inferior goods
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.
