Related InterviewSolutions

• When price of a good falls from ₹ 15 per unit to ₹ 12 per unit, its demand rises by 25% , calculate `P.e_(D)`A. 0.8B. 0.33C. 1.25D. none of these
• If ratio of Change in quantity `(DeltaQ)` to original quantity Q is 0.5 and elasticity of demand is (-) 1.25, calculate the percentage change in price.
• The Indian Government imposed heavy taxes on commodity to reduce its consumption by the pubic such heavy taxes will decrease the deamand of the commodity only when:A. `E_(d)=0`B. `E_(d) gt 1`C. `E_(d) lt 1`D. `E_(d)=1`
• If the demand for a good is made by a rich consumer , its demand is generally.A. Less elasticB. Highly elasticC. Unitary elasticD. Perfectly elastic
• price elasticity of demand measure percentage change in quantity demanded of a good due to precentage change inA. price of complementary goodsB. price of the goodC. income of a consumerD. tastes of a consumer.
• The Percentage change in demand is three times the percentage change in price. If original demand was 30 units at the price of ₹ 7 per unit, then calculate the price elasticity of demand, given price increased by 10% . Indicate whether the demand is elastic or not. Also calculate the new quantity demanded.
• The factors affecting `P.e_(D)` areA. nature of the commodityB. time periodC. availability of close substitutesD. all of these.
• Perfectly elasticy demand is represented by a curve which isA. prallel to Y-axisB. rectangular hyoperbolaC. parallell to X -axisD. Strainght line downward sloping.
• A 5% fall in the price of X leads to a 10% rise in its demand. In case of GoodY , a2% rise in price leads to a 6% fall in its demand. In the given case, _______ is more elastic.A. XB. YC. Both X and Y are equally elasticD. Both X and Y are inelastic
• What will be `P.e_(D)` on any two points of a demand curve which is parllel to X axis ?A. zeroB. unequalC. equalD. higher on the point to the right.