119. In the event the a customers was a chronic consumer out-of a commodity, zero pad¬ter simply how much its price change, the newest interest in this new Commodity would-be ________. (a) Elastic (b) Inelastic (c) Perfectly Flexible (d) Unitary Address: (b) Inelastic
Which of the following the ‘s the preposition into dating be¬tween money elasticity off request in addition to ratio cash invested on it?
121. In case your need for good was inelas-tic, a boost in their speed will cause the entire costs regarding the brand new people of your own good to: (a) Are still an identical. (b) Raise. (c) Decrease. (d) Any of these. Answer: (b) Increase.
122. Considering the after the five possibili-ties, what type contributes to a boost in complete individual expense? (a) Request are unitary flexible and you can rate drops. (b) Request was elastic and you may rates goes up. (c) Consult was inelastic and rates drops. (d) Demand is inelastic and you may costs increases.
123. Assume a consumer’s earnings increases away from ? 29,one hundred thousand in order to ? thirty six,one hundred thousand. Consequently, the consumer develops the girl instructions off music cds (CDs) off twenty five Dvds so you’re able to 29 Cds. What is the fraud-sumer’s earnings flexibility off interest in Cds? (Use Arch Suppleness Strategy) (a) 0.5 (b) 1.0 (c) step one.5 (d) 2.0 Respond to: (b) step 1.0
124. The quantity bought remains ongoing despite the change when you look at the earnings. This can be labeled as ________. (a) Negative earnings flexibility from demand. (b) Money elasticity from demand lower than that. (c) No income elasticity out-of request. (d) Income suppleness regarding demand is actually greater than one to. [Read more…] about Answer: (d) Request is inelastic and you will costs goes up