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.
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
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.
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
Inelastic
A vertical demand curve has
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
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.
Perfectly elastic
Elastic
Perfectly inelastic
Cross elasticity of demand is
Negative for complementary goods
Negative for substitute goods
Unitary for inferior goods
Positive for inferior goods.
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
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
