What does price elasticity of demand measure?

A Change in price caused by changes in demand
B The rate of change of sales
C The responsiveness of demand to price changes
D The value of sales at a given price

Correct Answer: The responsiveness of demand to price changes

The price elasticity of demand measures the responsiveness of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. Necessities tend to have inelastic demand.
Bissoy MCQ
#Commerce #Economics

Related Questions

when demand for factory's products is high . more money is spent at the factory for safety precautions and machinery maintenance than when demand is low. thus the average number of on -the-job accidents per employee each month should be lower during perids when demand is high than when demand is low and less money is available for safety precautions and machinery maintenance .when demand for its products is high, casts the most serious doubt on the conclusion drawn above?
A Employees demand for higher wages than they do at other times.
B Authority hires new workers but lacks the time to rain them properly.
C Employees are less likely to lose their jobs than are at other times.
D Authority sponsors a monthly safety award for each division in the factory.
When demand for a factory's products is high, more money is spent at the factory for safety precautions and machinery maintenance than demand is low. Thus the average number of on-the-job accidents per employee each month should be bower during periods when demand is high than when demand is low and less money is available for safety precautions and machinery maintenance. Which of the following,if true about a factory when demand for its product is high casts the most serious doubt on the conclusion drawn above?
A Its employees ask for higher wages than they do at other times.
B Its management hires new workers but lacks the time to train them properly.
C Its employees are less likely to lose their jobs than they are at other times.
D Its management sponsors a monthly safety award for each division in the factory.
During a sale, a salesperson was putting a new price tag on each item. On one shirt, he accidentally raised the price by 15% instead of lowering the price by 15%. As a result the price on the tag was Tk. 60 higher than the price that would have been the discounted price. What was the original price of the shirt?
A Tk. 220
B Tk. 250
C Tk. 150
D Tk. 200
When as a result of decrease in price of good, the total expenditure made on it decreases we say that price elasticity of demand is
A Less than unity
B Unity
C Zero
D Greater than Unity
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price
A Equal to one
B Greater than one
C Small than one
D Zero
The price of a pen is 25% more than the price of a book . The Price of a pen holder is 50% more than the price of the book. How much is the price of the pen holder more than the price of the pen?
A 50%
B 25%
C 20%
D 37.5
The price of a pen is 25% more than the price of a book. The price of a pen holder is 50% more than the price of the book. How much is the price of the pen holder more than the price of the pen?
A 20%
B 25%
C 50%
D 37.5%
The price of a pen is 25% more than the price of a book. The price of a fan holder is 50% more than the price of the book. How much is the price of the pen holder more than the price of the pen?
A 20 %
B 25%
C 35%
D 15%
During a sale, the price of a pair of shoes is marked down by 10% from the regular price. After the sale ends, the price goes back to the original price. What is the percent increase (to the nearest whole number) form the discounted sale price to the regular price for the shoes?
A 9%
B 10%
C 11%
D 15%
At a certain bookstore , the regular price of each book is 20 percent less than its list price. If during a sale the price of each book at the store was 15 percent less than its regular price, then the price of a book during the sale was what percent less than its list price ?
A 30%
B 32%
C 35%
D 38%

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