Related InterviewSolutions

• Give meaning of perfectly elastic demand and perfectly inelastic demand of a commodity.
• Price elasticity of demand of a good is (-) 2. At a price of Rs. 10 per unit 40 units of this good are bought . How units will be bought at a price of Rs. 11 per unit ? Calculate.
• The quantity demanded of a commodity rises from 800 units to 850 units when its price falls from Rs. 20 per unit to Rs. 19 per unit . Calculate its elasticity of demand.
• At a price of Rs. 50 per unit the quantity demanded of a commodity is 1000 units . When its price falls by 10 percent , its quantity demanded rises to 1080 units . Calculate its price elasticity of demand . Is its demand inelastic ? Given reasons for your answer.
• When price of a good falls by 10 percent , its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percentage method.
• Price elasticity of demand (-3) means 3 percent fall in demand due to :A. 3 per cent fall in priceB. 3 per cant rise in priceC. One per cent rise in priceD. One per cent fall in price
• Price elasticity of demand measure shows :A. Response of price to change in demandB. Response of demand to change in priceC. Degree of response of price to change in demandD. Degree of response of demand to change in price
• What is the relation between good x and y in each case , if with the rise in price of x demand for good y (i) rises and (ii) falls ? Given reason.
• Show that there is inverse relation between price of a commodity and its quantity demanded . Use Utility Analysis.
• The measure of price elasticity of demand of a normal good carries minus sing while price elasticity of supply carries plus sing . Explain why ?