For an inferior good ? A. The price elasticity of demand is negative: the income elasticity of demand is negative B. The price elasticity of demand is positive the income elasticity of demand is negative C. The price elasticity of…
Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ? A. 550 units B. 500 unitsC. 450 units D. 490 units
The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ? A. 3000B. 7000 C. 5500 D. 4500
If the price elasticity of demand is unit then a fall in price ? A. Reduces revenueB. Leaves revenue unchanged C. Increase revenue D. Reduces costs
Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ? A. Demand is price inelastic B. The good is inferior C. Income elasticity is…
If a product is a vablen good ? A. Demand is inversely related to income B. Demand is inversely related to priceC. Demand is directly related to price D. Demand is inversely related to the price of substitutes
An increase in the price of a complement for product A would ? A. Shift demand for Product A outwardsB. Shift demand for product A inwards C. Shift supply for product A outwards D. Shift supply for product A inwards
If marginal utility is zero ? A. Total utility is zero B. An additional unit of consumption will decrease total utility C. An additional unit of consumption will increase total utilityD. Total utility is maximized
Demand for a normal product may shift outwards if ? A. Price decreasesB. The price of a substitute falls C. The price of a complement rises D. income falls
Which best describes a demand curve ? A. the quantity consumers would like to buy in an ideal world B. The quantity consumers are willing to sell C. The quantity consumers are willing and able to buy at each and…