(A) Constant
(B) Rising
(C) Decreasing
(D) Rises and then falls
Tag: Economics Mcqs With Answers
When percentage change in quantity demanded is less than the percentage change in price demand curve is:
(A) Steeper
(B) Flatter
(C) Rectangular
(D) Horizontal
When income elasticity of demand is equal to zero, then the good is:
(A) Necessity
(B) Luxury
(C) Poor quality necessity
(D) Inferior good
When income elasticity of demand is greater than one, then the good is:
(A) Luxury
(B) Necessity
(C) Inferior good
(D) Poor quality necessity
When cross elasticity of demand is zero, then two goods are:
(A) Compliments
(B) Substitutes
(C) Not related
(D) Perfect compliments
The absolute value of the coefficient of elasticity of demand ranges from:
(A) Minus infinity to Plus infinity
(B) Zero to infinity
(C) One to infinity
(D) All of the above
Demand is elastic when:
(A) Price level is high
(B) More substitutes are available
(C) Income of the consumer is less
(D) All of the above
Coefficient of elasticity of demand is negative. It means:
(A) Consumers sometimes buy negative units of a commodity
(B) Price and quantity demanded move in same direction
(C) Law of demand holds
(D) The two goods are complementary to each other