_____1.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.

_____2.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

_____3.When computed value of a good is zero, the good is:

a)elasticb)inelastic

c)perfectly elasticd)perfectly inelastic

_____4 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

_____5. A change in price results to a bigger change in quantity demanded.

a) inelastic demandb)unitary demand

c) elastic demandd)none of the above

_____6 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

_____ 7.NFA rice is an example of a good that is:

a)elastic supplyb)inelastic supply

c)perfectly elastic supplyd)perfectly inelastic supply