Elasticity of Demand

Q.

Distinguish between the increase in demand and the decrease in demand.

Q.

What are the determinants of elasticity of supply?

Q. What is the relationship between TU & MU ?

Q.
When the slope of demand curve =$\infty$, price elasticity of demand =0.

1. True
2. False

Q. Given constant prices, the consumer is said to be in equilibrium with respect to purchase of different commodities when he has:

1. None of the above
2. Further tendency to substitute one commodity for another
3. No tendency to substitute one commodity for another
4. Obtained minimum possible satisfaction from the commodities

Q. State with reason whether you agree or disagree.
There is no relationship between marginal utility and total utility.

Q. The total amount of units a person derives from consumption of a specific quantity of a good is called ________.

1. total utility
2. differential utility
3. marginal utility
4. utility

Q. Answer in detail:
Explain the relationship between TU and MU.

Q.

differntiate between increase in demand and expansion in quantity demanded.

Q. Suppose the price elasticity of demand for a good is $-0.2$. If there is a $5$ per cent increase in the price of the good, by what percentage will the demand for the good go down?

Q. In a perfect competition, the demand for product of the firm is _______.

1. perfectly inelastic
2. perfectly elastic
3. unitary elastic
4. any of above

Q.

price elasticity of demand is -3 . If price rises from RS 10 per unit to Rs 12 per unit , what is percentage change in demand ?