Quiz-02

The price elasticity of demand for vertical demand curve is ______________.

• unitary elastic.

• perfectly elastic.

• inelastic.

• perfectly inelastic.

Price elasticity of supply for goods in the ratio between _________________.

• change in quantity supply and changes in price.

• change in price and changes in supply quantity.

• change in percentage of supply quantity with changes in percentage of good price.

• change in price and changes in percentage in supply quantity.

If the price of demand for a good is -1.8, the demand for the good can be described as _________________.

• perfectly elastic.

• elastic.

• unitary elastic.

• Inelastic.

If the price elasticity of demand for a good is zero, this means that the good _______________.

• will still be in demand when there is an increase in price.

• will not be in demand when there is an increase in price.

• will be purchased in smaller quantities when there is an increase price.

• will be purchased in the same quantity at any price level.

A normal goods can be distinguished from an inferior goods because a normal good has _________________.

• a positive income elasticity of demand.

• a positive price elasticity of demand.

• a positive cross elasticity of demand.

• a negative income elasticity of demand.

Cross elasticity of demand is ____________.

• negative for complementary of goods.

• unitary for inferior goods.

• negative for substitute goods.

• positive for inferior goods.

If the value of cross elasticity of demand is negative, goods C and D are _______________.

• tea and coffee.

• car and petrol.

• sugar and milk.

• book and shoes.

The price of goods Z increases from RM200 to RM300, the quantity supplied increases from 100 units to 180 units. Find the value of price elasticity of supply for goods Z.

• 1.6

• 0.63

• 0.4

• 2.5

The price of goods Z increases from RM200 to RM300, the quantity supplied increases from 100 units to 180 units. Find the value of price elasticity of supply for goods Z.

• 1.6

• 0.63

• 0.4

• 2.5

If the price elasticity of supply for Goods J is equal to 0.6, a large change in price will cause _________________.

• large changes in quantity supplied.

• quantity supplied becomes infinity.ll

• small changes in quantity supplied.

• no changes in quantity supplied.