Important MCQs of Elasticity of Demand Microeconomics class 11

Share your love

Looking for important MCQs of Elasticity of demand with answer of Microeconomics class 11 CBSE, ISC and State Board.

We have compile a good collection of Multiple choice Questions with solutions of Elasticity of Demand class 11 microeconomics

Multiple choice Questions of Elasticity of Demand with answers of Microeconomics class 11 CBSE

Let’s Practice

If there is no change in demand for commodity ‘X’, even after rise in its price, then its demand is:

a) Perfectly Elastic
b) Perfectly Inelastic
c) Less Elastic
d) Highly Elastic

Ans – b)

The Elasticity of demand for a product will not be higher:

a) When it is considered a necessity by its buyers
b) When less substitutes for the product are available
c) When it has serveral uses
d) When it is an expensive commodity

Ans – a), b)

Demand for a good is less elastic when:

a) Percentalge change in price > Percentage change in quantity demanded
b) Percentage change in quantity demanded > Percentage change in price
c) Percentage change in price = Percentage change in quantity demanded
d) Demand curve is steeper

Ans – a), d)

Which of the following will have elastic demand?

a) Matchbox
b) Coke
c) Medicines
d) Air Conditioners

Ans – b)

If the price elasticity of demand for a commodity is less than unity, a decrease in price would result in:

a) Proportionately less increase in the quantity demanded
b) Proportionately more increase in the quantity demanded
c) Increase in total expenditure on the product
d) None of these

Ans – a)

Which one of the following statements is incorrect:

a) Higher numerical value of elasticity indicates larger effect of a price change on the quantity demanded
b) Elasticity of demand can vary only between -1 and +1
c) The demand curves for all commodities which have unitary elastic demand will be rectangular hyperbola.
d) Elasticity of demand estbalishes a qualitative relationship between quantity demanded of a commodity.

Ans – b), d)

If the percentage increase in the quantity demanded of a commodity is less than the percentage fall in its price, then elasticity of demand
is:

a) > 1
b) = 1
c) < 1
d) = 0

Ans – c)

Price elasticity of demand is best defined as:

a) Change in the tastes of consumers at different prices.
b) change in demand when income of the consumer increases
c) The rate of response of demand to a change in price
d) The rate of response of demand to change in price of related goods

Ans – c)

Which of the following influence price elasticity of demand?

a) Nature of the commodity
b) Income level
c) Availability of substitutes
d) All of these

Ans – d)

A negative sign with coefficient of price elasticity of demand denotes:

a) Direct relation between price and quantity demanded
b) Inverse realtion between price and quantity deamnded
c) No relation between price and quantity demanded
d) None of these

Ans – b)

A 5% fall in the price of X leads to a 10% rise in its deamnd. In case of Good Y, a 2% rise in price leads to a 6% fall in its demand.
In the given case, __ is more elastic.

a) X
b) Y
c) Both X and Y are equally elastic
d) Both X and Y are inelastic

Ans – b)

In case of __ there is an infinite demand at a particular price and demand becomes zero with a slight rise in price.

a) Perfectly inelastic demand
b) Highly elastic demand
c) Less elastic demand
d) Perfectly elastic demand

Ans – d)

If a good takes up significant share of consumer’s budget, it will be:

a) Less elastic
b) Highly elastic
c) Unitary elastic
d) Perfectly elastic

Ans – b)

If there is no change in quantity demanded to any change in price, then demand is and demand curve is _ .

a) Perfectly elastic, horizontal straight line
b) Perfectly elastic, vertical straight line
c) perfectly inelastic, horizontal straight line
d) perfectly inelsatic, vertical straight line

Ans – d)

If the demand for a good is made by a rich consumer, its demand is generally:

a) Less elastic
b) Highly elastic
c) Unitary elastic
d) Perfectly elastic

Ans – a)

A firm is currently selling 10,000 units of its product per month. The firm plans to reduce the retail price from ₹1 to ₹0.99. From
the previous experience, the firm knows that th eprice elasticity of demand for the product is (-) 1.5. Assuming no other changes, the firm
can now expect the sales of:

a) 8,500 units
b) 10,500 units
c) 11,000 units
d) 11,500 units

Ans – d)

The demand for meals at a medium priced restaurant is elastic. If the management of hte restaurant is considering raising prices, it can expect
a relatively:

a) Proportionately large fall in quantity demanded
b) No change in quantity demanded
c) Proportionately small fall in quantity demanded
d) infinte change in quantity demanded

Ans – a)

With incrase in price of bugers by 22%, its demand falls by 25%. This indicates that demand for burger is:

a) Elastic
b) Inelastic
c) Unitary Elastic
d) Perfectly Elastic

Ans – a)

Price Elasticity of Demand of a good is (-) 3. It shows that:

a) When price falls by 1%, demand rises by 3%
b) When price rises by 1%, demand falls by 3%
c) Either a) or b)
d) Neither a) nor b)

Ans – c)

The Indian Government imposed heany taxes on commodity to reduce its consumption by the public. Such heavy taxes will decrease the demand
of the commodity only when:

a) Ed = 0
b) Ed > 1
c) Ed < 1
d) Ed = 1

Ans – b)

If the percentage change in quantity supplied of commodity X is more than the percentage change in price of the commodity X, the coefficient
of price elasticity of supply would be _ .

a) Es = 1
b) Es < 1 c) Es = 0 d) Es > 1

Ans – d)

The coefficient of price elasticity of supply of a good is 3. It is known as _ .

a) Unitary Elastic Supply
b) Perfectly Inelastic Supply
c) Elastic Supply
d) Inelastic Supply

Ans – c)

Share your love
Default image
Anurag Pathak
Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.
Articles: 954

Leave a Reply

close

Ad Blocker Detected!

Our Website is made possible by displaying online advertisements to our visitors. Please consider supporting us and remove the AD - Blocker to read this article.

Refresh

error: Content is protected !!