0% 0 votes, 0 avg 111 ELASTICITY OF DEMAND AND SUPPLY.Advertisements 1 / 14 1. If supply is perfectly elastic then: (Select 2) A) Supply curve become horizontal B) supply curve become vertical C) Little change in price will cause infinite change in supply D) it has zero elasticity 2 / 14 2. When demand is inelastic or perfectly inelastic then consumer surplus will be: A) More than producers B) Less than producers C) Both are correct D) None is correct 3 / 14 3. If elasticity of demand is inelastic, then A) 0 B) 1 C) >1 D) <1 4 / 14 4. If demand is perfectly inelastic then curve is: (Select TWO) A) Vertical B) parallel to x-axis C) Horizontal D) parallel to y-axis 5 / 14 5. ________ measures responsiveness of supply to a change in its price. A) Price elasticity of supply B) Income elasticity of supply C) Cross elasticity of supply D) None 6 / 14 6. Increase in price will increase total revenue when demand is: (Select TWO) A) elastic B) inelastic C) perfectly elastic D) perfectly inelastic 7 / 14 7. If the income elasticity of demand for a good is positive but less than 1, then the good will be: A) Necessities B) Luxuries C) Inferior D) Substitute 8 / 14 8. If demand if perfectly inelastic and supply is perfectly elastic, then: A) Consumer surplus zero, producer surplus infinite B) Consumer surplus more than producer surplus C) Consumer surplus more than producer surplus D) producer surplus more than Consumer surplus 9 / 14 9. Production and employment in which of the following industries would be least affected byrecession? A) Steel B) Sugar C) Vehicles D) Garments 10 / 14 10. Suppose the demand is elastic, supply is inelastic, then decrease in supply would lead to: A) increase price more than decrease in quantity B) increase price less than decrease in quantity C) decrease price more than decrease in quantity D) decrease price more than increase in quantity 11 / 14 11. If total consumer expenditure decreases in response to a price fall, demand is: (Select TWO) A) elastic B) inelastic C) perfectly inelastic D) perfectly elastic 12 / 14 12. An increase in the demand of good with no change in prices will cause the price elasticity of A) demand zero B) supply infinite C) demand less than 1 D) supply Zero 13 / 14 13. Price elasticity of a demand is is 2.0 . The graph would be A) Flatter B) Horizontal C) Vertical D) Both a and c 14 / 14 14. Over a long period of time: A) demand becomes more elastic and supply becomes less elastic B) demand becomes less elastic and supply becomes more elastic. C) both demand and supply become more elastic. D) both demand and supply become less elastic Your score isThe average score is 52% 0% Restart quiz Advertisements
