Elastic and Inelastic Demand

Q.

Calculate intermediate consumption from the following data: gross value of output = 300 net value added of factor cost =100 subsidies =15 and depreciation =30.

Q.

What Is the Maximum Point of TP?

Q. Individual demand is a concept related to microeconomics, while market demand is a concept related to macroeconomics.

1. True
2. False

Q.

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to _____.

1. decrease
2. remains the same
3. increase
4. become zero

Q.

A yield point may be defined as the point where

Q. A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as ___________.

1. Cross Elasticity of Demand
2. Complementary Elasticity of Demand
3. Price Elasticity of Demand
4. Substitution Elasticity of Demand

Q. The consumer will maximize his satisfaction and to be in equilibrium at a point where ____________.

1. price line or budget line is tangent to an IC
2. price line crosses an IC
3. price line does not touch the IC
4. none of the above

Q. A vertical supply curve parallel to Y axis implies that the elasticity of supply is?

1. Zero
2. Infinity
3. Greater than zero but less than infinity
4. Equal to one

Q. A situation of excess demand or excess supply is automatically corrected under perfect competition. Comment.

Q. the quantity demanded of a commodity at a price Rs 8 per unit is 600 units . Its price falls by 25% and quantity demanded by 120 units . calculate its price elasticity of demand . is its demand elastic ? give reason for your answer .

Q. Define or explain the concept of 'unitary elastic demand'.

Q. A firm in the perfect competition market will attain equilibrium in the long run when demand curve will _____________.

1. be tangent to AC curve at the minimum point
2. both a & c
3. lie to the right of the AC curve and intersect it
4. lie to the right of the AC curve and intersect it twice