Price Elasticity of Supply

Q.

When is supply said to be perfectly inelastic?

Q.

What happens when the value of price elasticity of supply is less than 1?

Q.

How do you find price elasticity?

Q.

What happens when the value of price elasticity of supply is more than 1?

Q. How are the equilibrium price and quantity of a commodity affected when its supply rises and demand is perfectly elastic?

Q. If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is _______________.

1. greater than $1$
2. less than $1$
3. zero
4. equal to $1$

Q. The elasticity of demand for luxury goods is ________.

1. infinite
2. more than one
3. less than one
4. equal to one

Q. Suppose income of the residents of Ecoville increase by $50$% and the quantity of fresh milk demanded increases by $30$%. We can say that fresh milk in economics sense is a/an ________.

1. inferior good
2. luxury good
3. normal good
4. can't be determined

Q. A monopolist charging high price operates on ____________.

1. the elastic part of a demand curve
2. the inelastic part of a demand curve
3. ignores elasticity of demand altogether
4. the unitary elastic part of a demand curve