Expenditure and Elasticity

Q.

What is unitary elastic demand?

Q.

What is the elasticity of supply and demand?

Q.

What is a better Elastic or Inelastic Demand

Q. Answer the following questions.
Explain the relationship between TU and MU.

Q. Income elasticity of demand for inferior goods is____ .

1. positive
2. negative
3. zero
4. greater than one

Q. What is meant by income elasticity of demand? Discuss any three uses of elasticity of demand.

Q. When percentage change in quantity demanded is equal to the percentage change in price, the elasticity of demand is __________.

1. elastic
2. unitary elastic
3. inelastic
4. perfectly elastic

Q. When as a result of an increase in the price of a good, the total expenditure made on it falls, we say that price elasticity of demand is ____________.

1. greater than unity
2. one
3. less than unity
4. zero

Q.

Q. When elasticity of demand and elasticity of supply are equal, the burden of tax ____________.

1. lies more on the buyer
2. lies more on the seller
3. all of the above are false
4. lies equally on the buyer and seller

Q. Price of a good fails from Rs 20 per unit to Rs 10 per unit. As per results, its demand rises from 80 units to 100 units. What can you say about the elasticity of demand? Use the Total Expenditure method to justify your answer.

Q. Using some hypothetical data, and descriptive form of data presentation:
Decribe the impact of increase in the price of petrol on the demand for cars and scooters.