MEDIUM
CA Foundation
IMPORTANT
Earn 100
The price of a good has decreased from to per unit. If the price elasticity of demand for it is and the original quantity demanded is units, the new quantity demanded will be _____.
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Important Questions on Theory of Demand and Supply
EASY
CA Foundation
IMPORTANT
The demand is said to be..... when the percentage change in quantity demanded is less than the percentage change in price.
EASY
CA Foundation
IMPORTANT
In case of wheat & Common salt, the nature of Price elasticity of demand is _____.
EASY
CA Foundation
IMPORTANT
If a Consumer is a habitual consumer of a commodity, no matter how much its price changes, the demand for the Commodity will be _____.
EASY
CA Foundation
IMPORTANT
The greater the proportion of income spent on a commodity, generally the _____ will be its elasticity of demand and vice versa.
EASY
CA Foundation
IMPORTANT
Given the following four possibilities, which one results in an increase in total consumer expenditure?
MEDIUM
CA Foundation
IMPORTANT
Suppose a consumer's income increases from to . As a result, the consumer increases her purchases of compact discs (CDs) from CDs to CDs. What is the consumer's income elasticity of demand for CDs? (Use Arc Elasticity Method)
EASY
CA Foundation
IMPORTANT
If there is no change at all in the quantity demanded, when price changes, the elasticity will be _____.
EASY
CA Foundation
IMPORTANT
If elasticity is _____, then the quantity demanded does not respond at all to a price change.
