The Demand for goods or services is defined as the desire of a consumer to purchase that commodity. The Supply of goods or services is the overall availability of that commodity in the market. These two forces influence the market economy of a particular product, industry or even a nation. Show
Below is a list of multiple-choice questions and answers on Demand and Supply to help students understand the topic better.
Answer: b Answer: b Answer: c Answer: c Answer: a Answer: b Answer: c Answer: c Answer: c Answer: b Answer: a Answer: a Answer: c Answer: b Answer: c Answer: c Answer: a Answer: d Answer: a Answer: d Answer: a Answer: a Answer: a Answer: b Answer: d Also See:
When price elasticity of demand of a good is greater than one expenditure on the good *?If the price elasticity of demand is greater than 1, it is deemed elastic. That is, demand for the product is sensitive to an increase in price.
When the price elasticity is greater than 1 the demand is elastic?If the formula creates an absolute value greater than 1, the demand is elastic. In other words, quantity changes faster than price. If the value is less than 1, demand is inelastic. In other words, quantity changes slower than price.
When the value of a goods price elasticity of demand is greater than 1?If price elasticity is greater than 1, the good is elastic; if less than 1, it is inelastic. If a good's price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic.
When the price elasticity of demand for a good is greater than 1 The change in total expenditure will be opposite to the direction of the price change?Elasticity is more than One (Ed > 1):
When demand is elastic, a fall in the price of a commodity results in increase in total expenditure on it. On the other hand, when price increases, total expenditure decreases. It means, in case of highly elastic demand, price and total expenditure move in the opposite directions.
|