1.A change in price results to a bigger change in quantity demanded.

a) inelastic demandb)unitary demand

c) elastic demandd)none of the above

2.In absence of change in price, there is an infinite change in quantity demanded.

a) inelastic demandb)unitary demand

c) perfectly elastic demandd)elastic demand

3.NFA rice is an example of a good that is:

a)elastic supplyb)inelastic supply

c)perfectly elastic supplyd)perfectly inelastic supply

4.What is Elasticity?

a.A measure of the responsiveness of one variable to a change in another variable.

b.A measure of flexibility of demand and supply.

c.Degree of responsiveness of the price to the quantity.

d.Degree of responsiveness of the income to the price.

5.What coefficient of price elasticity shows?

a.degree of market competition

b.degree of responsiveness to price changes

c.degree of responsiveness to income changes

d.degree of responsiveness to complementary goods

6.When computed value of a good is zero, the good is:

a)elasticb)inelastic

c)perfectly elasticd)perfectly inelastic

7. A decrease in the price of raw materials

a)a change in demandb)a change in supply

c)a change in quantity demandedc)a change in quantity supplied