Elasticity of Demand
Economics ⇒ Consumer and Producer Behaviour
Elasticity of Demand starts at 11 and continues till grade 12.
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A 10% increase in income leads to a 15% increase in the quantity demanded of a good. What is the income elasticity of demand?
A 5% increase in the price of a product leads to a 2% decrease in quantity demanded. What is the price elasticity of demand?
Define price elasticity of demand.
Describe the point method of measuring price elasticity of demand.
Explain how the availability of close substitutes affects the price elasticity of demand for a product.
Explain the difference between perfectly elastic and perfectly inelastic demand.
Explain the importance of elasticity of demand for a business firm.
Explain the relationship between price elasticity of demand and total revenue.
Explain the total expenditure method of measuring price elasticity of demand.
Explain why the demand for food grains is less elastic than the demand for luxury cars.
If the cross elasticity of demand between tea and coffee is positive, what does it indicate about the relationship between the two goods?
If the cross elasticity of demand between two goods is negative, what does it indicate?
If the price elasticity of demand for a product is -0.5, what does it indicate about the nature of demand?
If the price of a commodity increases from ₹10 to ₹12 and its quantity demanded falls from 100 units to 80 units, calculate the price elasticity of demand using the percentage method.
If the price of a good falls by 10% and its quantity demanded rises by 20%, what is the price elasticity of demand?
If the price of a good falls from ₹50 to ₹45 and the quantity demanded increases from 200 units to 220 units, calculate the price elasticity of demand using the arc method.
If the price of a good increases and total expenditure on the good decreases, what can you say about the price elasticity of demand?
If the price of a good increases by 15% and the quantity demanded decreases by 15%, what is the price elasticity of demand?
If the price of petrol rises and the demand for cars falls, what type of elasticity is being demonstrated?
State any two factors that affect price elasticity of demand.
