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
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
In figure, a unit elastic demand curve is shown by
a
b
c
d
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
Perfectly inelastic
Unit elastic
Relatively elastic
If change in the demand of the commodity is proportionate to change in price, the demand of the commodity will be
Unit elasticity
Less than unit elasticity
Perfectly elastic
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
Inelastic
Elastic
A vertical demand curve has
Infinite elasticity
Zero elasticity
Varying elasticity
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.
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
