In a straight line demand curve sloping downward from left to right, what will be the elasticity of demand at the mid point of the curve?
Infinity
Unity
Zero
One
A slight change in price causing on infinite change in demand is a situation of
Unit elastic demand
Perfectly elastic demand
More elastic demand
Perfectly inelastic demand
Which of the following commodities has less elastic demand?
Salt
Coffee
Tea
Pen
Elasticity of demand will be less in the case of households having
High income
Low income
Very low income
Very high income
The demand for a commodity is always
At its cost
At its price
At its size
At its demand
If a demand curve is a straight line parallel to y-axis it shows
Less elastic demand
Which of the following pairs of commodities is an example of substitutes?
Car and petrol
Paper and pen
Coffee and tea
None of these
In a market economy a central problems are settled by
Private sector
Central planning authority
Price mechanism
Demand theory
The indifference curve approach was introduced by
Prof .Samuelson
Prof : Hicks
Prof. Marshall
Prof Adam smith
The degree of responsiveness of demand for a commodity to a change in its price is called
Elasticity of demand
Increase in demand
Expansion of demand
Decrease in demand
