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ICSE Class 10 Theory of Demand & Elasticity — practice questions — page 2

Explore 98 free Theory of Demand & Elasticity questions in ICSE Class 10 Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Theory of Demand & Elasticity questions and exercises with answers

Showing questions 31–60 of 98.

Goods exhibiting relatively elastic demand have an elasticity:Read the answer and worked solution →If quantity purchased remains completely unchanged across price shifts:Read the answer and worked solution →How does having many close substitutes affect elasticity?Read the answer and worked solution →Why do necessity goods like insulin have low elasticity?Read the answer and worked solution →Responsiveness of purchases to fluctuations in consumer earnings is:Read the answer and worked solution →Price elasticity carries a negative sign primarily because:Read the answer and worked solution →What occurs when demand is perfectly elastic?Read the answer and worked solution →How does the slope of a demand curve relate to elasticity?Read the answer and worked solution →How does elasticity behave along a linear demand curve?Read the answer and worked solution →Which formula uses average price and quantity between two points?Read the answer and worked solution →What tool calculates elasticity for an infinitesimal price change?Read the answer and worked solution →Who defined elasticity of demand in Principles of Economics?Read the answer and worked solution →At what elasticity value is total revenue maximized?Read the answer and worked solution →How does raising price affect total revenue if demand is inelastic?Read the answer and worked solution →What happens to total revenue when price rises for an elastic good?Read the answer and worked solution →How does a longer timespan typically influence price elasticity?Read the answer and worked solution →What does a negative cross-price elasticity between two goods mean?Read the answer and worked solution →Who bears more of a tax burden when demand is relatively inelastic?Read the answer and worked solution →Why is elasticity described as a unitless measure in economics?Read the answer and worked solution →How does a broader commodity definition affect demand elasticity?Read the answer and worked solution →Match demand laws: 1. Price: p. Inverse 2. Rise: q. Drops qty 3. Fall: r. Grows qtyRead the answer and worked solution →Match price effects: 1. Income: p. Real pay 2. Sub: q. Rival good 3. Price: r. QuantityRead the answer and worked solution →Match curve actions: 1. Price: p. Movement 2. Income: q. Shift 3. Taste: r. New curveRead the answer and worked solution →Match related goods: 1. Coffee: p. Tea sub 2. Car: q. Petrol pair 3. Pen: r. Ink jointRead the answer and worked solution →Match Giffen traits: 1. Giffen: p. Inferior 2. Price: q. Rise qty 3. Famine: r. PotatoRead the answer and worked solution →Match Veblen luxury: 1. Veblen: p. Diamond 2. Status: q. High fee 3. Luxury: r. PrestigeRead the answer and worked solution →Match demand curves: 1. Slope: p. Downward 2. Axis Y: q. Price 3. Axis X: r. QuantityRead the answer and worked solution →Match curve moves: 1. Right: p. Increase 2. Left: q. Decrease 3. Along: r. Own priceRead the answer and worked solution →Match sub mechanics: 1. Dear: p. Switch 2. Rival: q. Cheaper 3. Qty: r. Drops downRead the answer and worked solution →Match demand terms: 1. Want: p. Preference 2. Pay: q. Income fund 3. Buy: r. Real spendRead the answer and worked solution →

Worked practice questions

Goods exhibiting relatively elastic demand have an elasticity:

  1. Elasticity is zero
  2. Elasticity exceeds one
  3. Elasticity equals one
  4. Elasticity is negative
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Correct answer: B. Elasticity exceeds one

Commodity demand is elastic when its price elasticity value is strictly greater than one.

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If quantity purchased remains completely unchanged across price shifts:

  1. Elasticity equals zero
  2. Elasticity equals one
  3. Elasticity equals two
  4. Elasticity is infinite
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Correct answer: A. Elasticity equals zero

Perfectly inelastic demand has an elasticity of zero because quantity demanded does not change with price.

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How does having many close substitutes affect elasticity?

  1. Makes demand zero
  2. Lowers elasticity
  3. Keeps it unchanged
  4. Raises elasticity
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Correct answer: D. Raises elasticity

Availability of close substitutes makes demand more elastic because buyers easily switch products.

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