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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose a seller of a textile cloth wants to lower the price of its cloth from 150 per metre to Rs. 142.5 per metre. If its present sales are 2000 metres per month and further it is estimated that its elasticity of demand for the product equals - 0.7</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Calculate the exact magnitude of its new total revenue.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Increase</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Decrease</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Constant</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose that price elasticity of demand for </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">petorl</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> is equal to unity and as Rs. 15 per litre an individual consumers (i.e. demands) 80 litres of petrol in a week. How much price of petrol should be fixed so that he demands 60 litres of petrol?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">10</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">35</span>			</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">40</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">20</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Colgate sells its standard size toothpaste for Rs. 25. Its sales have been on an average 8000 units per month over the past year. Recently, its close competitor </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Binaca</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> reduced the price of its same standard size toothpaste form Rs. 35 to Rs. 30. As a result, Colgate sales declined by 1500 units per month.</span></p>
<p style="margin-top: 0; margin-bottom: 0;">	<span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">(</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">i</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">) Calculate the cross elasticity between the two products.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5.7</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">6.1</span>		</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">8.9</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">th</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> following demand function for coffee in terms of price of tea is given. Find out the cross elasticity of demand when price of tea rises from Rs. 50 per 250 grams pack to Rs. 55 per 250 grams pack.</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Qc = 100 + 2.5 P1</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">where</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> Qc is the quantity demanded of coffee in terms of packs of 250 grams and Pt is the price of tea per pack.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">.55</span>		</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">.56</span>	</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">.57</span>			</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">.58</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Two goods have a cross-price elasticity of demand of + </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">1.2  (</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">a) If the price of one of the goods rises by 5 per cent. </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">what</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> will happen to the demand for the other goods. </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">holding</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> other factors constant?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span>			</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5% Increase</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">6% Increase</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5% Decrease</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In an attempt to increase sales and profits, a firm is considering 5 per cent increase in price and 15 per cent increase in advertising expenditure. If the price elasticity of demand is - 1.5 and advertising elasticity of demand is + 0.7, would there be increase or decrease in total revenue?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Increase</span>	</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Decrease</span>	</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Constant</span>		</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None </span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which of the following will have elastic demand?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Matchbox</span>		</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">NCERT Textbooks</span>	</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Medicines</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Air Conditioners</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">A 5% fall in the price of X leads to a 10% rise in its demand. 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.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">X</span>				</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Y</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Both X and Y are equally elastic</span>				</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Both X and Y are inelastic</span></p>
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<p>&nbsp;</p>
<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Price Elasticity of Demand of a good is (-) 3. It shows that:</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">When price falls by 1%, demand rises by 3%</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">When price rises by 1%, demand falls by 3%</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Either (a) or (b)</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Neither (a) nor (b)</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">The demand function of good ‘A’ is given as: QA = 40 - 5PA. Calculate its </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">cofficient</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> of price elasticity when price rises from Rs. 4 to Rs. 6.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">-1</span>			</p>
</td>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.5</span>		</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">What is the value of elasticity of demand if the demand for the good is perfectly elastic?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0</span>			</p>
</td>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span>			</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">infinity</span>			</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Less than 0</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">What is the original price of a commodity when price elasticity is 0.71 and demand changes </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">form</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> 20 units to 15 units and the new price is Rs. 10?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Rs. 7.4</span></p>
</td>
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<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Rs. 18</span>	</p>
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<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Rs. 20</span></p>
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<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Rs. 8</span></p>
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<p>&nbsp;</p>
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<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Cross elasticity of demand in Monopoly market is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinite</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">One </span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">What is income elasticity of demand, when income changes by 20% and demand changes by 40%</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">½</span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.33</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None </span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">When demand curve is linear and it is parallel to X axis. The demand is</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Perfectly Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Inelastic </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Highly elastic </span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Increase in Price from Rs. 4 to Rs. 6 then decrease in demand from 15 units to 10 units. What is the price elasticity (Percentage Method)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.66</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">-1.5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The good has many substitutes</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The good is a luxury (as opposed to a necessity)</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The good is a small part of the consumer’s income</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">There is a great deal of time for the consumer to adjust to the change in prices.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Elasticity between two points</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Point elasticity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Arc elasticity</span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Cross elasticity</span>					</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">If the demand for a good is price elastic, a fall in price will lead to :</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A rise in total expenditure on the good</span>				</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A fall in sales</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A fall in total expenditure on the good</span>					</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">No</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> change.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose the price of movies seen at a theatre rises from Rs. 120 per person to Rs. 200 per person. The theatre manager observes that the rise in price leads to a fall in attendance at a given movie from 300 to 200 persons what is then price elasticity of demand for movies:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">8</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.0</span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.2</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose the income elasticity of education in private school in India is 1.6. What does this indicate:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Private school education is a luxury.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Private school education </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">is  necessity</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Private school education is an inferior commodity.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">We should have more private schools.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which of the following is False?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Price elasticity of demand is the degree of responsiveness of quantity demanded of a good to a change in the price of that good.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A Perfectly Elastic Demand is one in which a little change in Price will </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">ccause</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> an infinite change in Demand. Under Perfect Competition, Demand Curve of a firm is </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">pertectly</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> elastic. In this case, demand curve is horizontal.</span></p>
<p>&nbsp;</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Unitary </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">elastic  demand</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> [E = 1] is one in which a % change in price produces an equal % change in demand. In this case, demand curve is called Rectangular Hyperbola.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">In case of E &gt; 1 the Shape of Demand curve goes on becoming </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">more steeper</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> and in case of E &lt; 1 the Shape of Demand curve goes on becoming more flatter.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">If demand is parallel to X axis, what will be the nature of elasticity?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Perfectly elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Highly elastic</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">When price falls from Rs. 6 to Rs. 4, the demand rises from 10 to 15 units. Calculate price elasticity of demand.(Percentage Method)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3.5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Cross elasticity of perfect substitutes is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Negative </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">One </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinity </span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which of the following is False?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Income Elasticity of Demand shows the responsiveness of the quantity demanded of a good to a small change in the income of the consumers.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Income Elasticity of Demand is positive in case of Normal Goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Income Elasticity of Demand is negative in case of Inferior Goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Income Elasticity of Demand is infinity in case of Necessaries Goods.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">A consumer spends Rs. 80 on purchasing a commodity when its price is Rs. 1 per unit and spends Rs. 96 when the price is Rs. is Rs. 2 per unit. Calculate the price elasticity of demand.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.5</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">When the price of cylinder rises from Rs. 120 to Rs. 200, the demand falls from 300 to 200 calculate price elasticity of demand.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.00</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.50</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5.00</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">If the price is decreased from Rs. 10 to Rs. 8 of a commodity but he quantity demanded remain the same price elasticity is ________.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinity  </span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Demand for electricity power is elastic because ______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">It is available at a very high price</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">It is essential for life</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">It has many uses</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">It has many substitutes</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose potatoes have (-).0.4 as income elasticity. We can say from the data given that:</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">  </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Potatoes are inferior goods.</span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Potatoes are superior goods.</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span>				</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Potatoes are necessities.</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">  </span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">There is a need to increase the income </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">of  consumers</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> so that they can purchase potatoes.</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">. Less than one</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In case of luxury goods, the income elasticity of demand will be ______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Negative but greater than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Positive but greater than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Positive but less than one</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In case of straight line demand curve meeting two axis, the price elasticity of demand at  </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">he</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> point where the curve meets  y - axis would be ______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Greater than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Less than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinity</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Calculate income elasticity for the household when the income of the household increases by 10% and the demand for cars rises by 20%</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">+ 2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">-2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">+5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">-5</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">All factors that determine replacement demand </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">shuld</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> be </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">cosidered</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;"> as a determinant of demand for durable goods</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">This statement is</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">partly true</span>				</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">completlely true</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">completlely false</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">can’t say</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">When price falls by 5% and demand increases by 6%, then is elasticity of demand is ____.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Elastic</span>			</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Inelastic</span>				</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Unitary elastic</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Cross elasticity of complementary goods is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Positive</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Negative</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None of these.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Demand of </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">i</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">-pod increases from 950 to 980 and income increases from 9000 to 9,800. What is income elasticity?</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.53</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.35</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.43</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which of the following is False?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Cross Elasticity of Demand is a change in the demand of one good in response to a change in the price of another good.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Cross Elasticity of Demand is Positive in case of Substitute goods, Negative in case of Complementary goods and Zero in case of unrelated goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The Curve of Positive Cross Elasticity of Demand slopes </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">upword</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> from left to right and the curve of Negative Cross Elasticity of demand slopes downwards from left to right.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None of these.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In which of the following cases the demand for goods tends to be less elastic?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Good is necessary</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Time period is shorter</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Number of close substitutes is less</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">All of the above</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which of the following elasticity of demand measures a movement along the demand curve rather than a shift in the curve?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Income elasticity of demand</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Price elasticity of demand</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Substitution elasticity of demand</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None of these.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Point elasticity is useful for which of the following situations?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The bookstore is considering doubling the price of notebooks</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">restauran</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> is considering lowering the price of its most expensive dishes by 50 percent.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">An auto producer is interested in determining the response of consumers to the price of cars being lowered by Rs. 100.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None of the above.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">If a 20% fall in price of a commodity brings about a 90% increase in its demand, then the demand for the commodity will be termed as:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Elastic</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Highly elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Perfectly elastic.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">A decrease in price will result an increase in total revenue it :</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The percentage change in quantity demanded in less than the percentage change in price.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The percentage change in quantity demanded is greater than the percentage change in price</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Demand is inelastic</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which of the following statements is correct?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span>			</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">With the help of statistical tools, the demand can be forecasted accurately.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">The more the number of substitutes of a commodity, more elastic is the demand.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Demand for butter is perfectly elastic.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Gold </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">jewellery</span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;"> will have negative income elasticity.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Demand for a good is elastic if</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A price fall produces a decrease in total expenditure on that good</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Demand for that good increases when price falls</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">A price fall produces a less than proportionate rise in the quantity demanded</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">As a result of rise in price total Expenditure of the goods decreases.</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">A 10% increase in price of Tea, results in 8% increase in the demand for coffee. The cross elasticity of Demand is _____</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0.8</span>		</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.25</span>	</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.8</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Even though there is change in price, if there is no change in total expenditure, then the Elasticity of Demand is _______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">&gt;1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">&lt;1</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Amongst the following which item has highest price </span><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Elasticity ?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Salt</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Petrol</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Indian Oil’s Petrol</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Rice</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Goods which are subject to Consumer Habits , e.g. Cigarette, Liquor , etc. are -</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Less Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Unit Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">More Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero Elastic</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Suppose the price of movies seen at a theatre rises from Rs. 120 per person to Rs. 200 per person. The theatre manager observes that the rise in price leads to a fall in attendance at a given movie from 300 to 200 persons what is then price elasticity of demand for movies: (Arc Elasticity)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">5</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">8</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.0</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.2</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In case of an inferior goods, the income elasticity of demand is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Positive</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Negative</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinite</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">For what type of good does demand fall with a rise in income levels of households?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Inferior goods</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Substitutes</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Luxuries</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Necessities</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Survey of buyers intentions includes</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">End - use method</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Sample survey method</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">complete enumeration method</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">all of the above</span></p>
</td>
</tr>
</table>
<p>&nbsp;</p>
<table class="TableGrid">
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">The quantity demanded does not respond to price change and so the elasticity is:</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">One </span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Infinite </span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero </span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None </span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In case of substitute goods, cross elasticity is _____</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">3</span>	</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Negative</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Zero</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Positive</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">None of these </span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Which factor generally keeps the price-elasticity of demand for a good low:</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Variety of uses for that good</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Its low price</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Close substitutes for that good</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">High proportion of the consumer&#039;s income spent on it</span></p>
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<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">In case of a straight line demand curve meeting the two axes, the price elasticity of demand at the mid-point of the line would be:</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">0</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">1.5</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">2</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">Barometric method of forecasting studies.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Lagging indicators</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">coincidental indicators</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">Leading indicators</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">All of the above</span></p>
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<p>&nbsp;</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000; font-weight: bold;">At a local theater, the general public pays of Rs. 50 for a movie ticket while college students receive Rs. 10 discount when they show a college ID card. What does this practice say about the theater’s perception of price of demand?</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">4</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">College student’s price elasticity of demand is 80% of that of the general public.</span>	</p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">College student’s price elasticity of demand is 20% of that of the general public.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">College student’s demand for movie tickets is less price elastic than that of the general public.</span></p>
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<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'Times New Roman'; font-size: 12pt; color: #000000;">College student’s demand for movie tickets is more price elastic than that of the general public.</span></p>
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Anon7 - 2021