Economics MCQs

Elasticity of Demand Questions with solutions MCQs

1. Luxury goods have______ degree of elasticity:

A

High

B

Low

C

Moderate

D

Completely inelastic

Elasticity of Demand Accounts Assistant LAHDC
Correct Answer : A
Explanation :

Compared to essential goods, luxury items are highly elastic. Goods with many alternatives or competitors are elastic because, as the price of the good rises, consumers shift purchases to substitute items. Incomes and elasticity are related—as consumer incomes increase, demand for products increases as well.

Correct Answered :

Wrong Answered :

2. Which of the following is not a method of measurement of price elasticity of demand in economics:

A

Expenditure method

B

Double method

C

Point method

D

Arc method

Elasticity of Demand Accounts Assistant LAHDC
Correct Answer : B
Explanation :

Double method

Correct Answered :

Wrong Answered :

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