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- Subject
- Elasticityeconomics-mcqs › elasticity
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Explanation
A product's demand tends to be price inelastic when it is a necessity, meaning consumers will buy it regardless of price changes. Luxury goods or products with many substitutes usually have more elastic demand, while being an inferior good does not necessarily imply inelastic demand.
More Elasticity MCQs
Practice related questions from the same subject.
- 1.What type of good is indicated when the income elasticity of demand is negative?
- 2.When a manufacturing plant has unused capacity, how is the firm's supply curve most likely characterized?
- 3.When technological advancements in agriculture cause the supply curve for agricultural products to shift rightward, what is the likely effect on the total revenue earned by farmers?
- 4.When the supply curve shifts leftward (a reduction in supply), under which condition will the total revenue in the market rise?
- 5.What does it imply if the supply curve of a product is price elastic?
- 6.Which of the following goods or services tends to have the least sensitive demand to price changes?
- 7.Typically, a demand curve that is relatively flat tends to be which of the following?
- 8.How is the price elasticity of demand best defined?
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