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?
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.
In figure, a unit elastic demand curve is shown by
Cross elasticity of demand is
Negative for complementary goods
Negative for substitute goods
Unitary for inferior goods
Positive for inferior goods
Change in the demand of a commodity due to change in the price of the substitute is an example of
If the price elasticity of demand for a good is. 75, the demand for the good can be described as:
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
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
If a good is a luxury, its income elasticity of demand is.
Positive and less than 1
Negative but greater than 1
Positive and greater than 1