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All questions of Elasticity of Demand for Class 10 Exam
What is the significance of understanding elasticity in wage bargaining?- a) To determine employee benefits
- b) To increase employment rates
- c) To understand how labor demand shifts with wage changes
- d) To set minimum wage rates
Correct answer is option 'C'. Can you explain this answer?
What is the significance of understanding elasticity in wage bargaining?
a)
To determine employee benefits
b)
To increase employment rates
c)
To understand how labor demand shifts with wage changes
d)
To set minimum wage rates
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EduRev Class 10 answered |
Understanding elasticity in wage bargaining is crucial because it helps negotiators assess how the demand for labor changes with wage variations. If demand is elastic, small changes in wages can significantly affect hiring decisions.
How does the geometric method for measuring elasticity differ from other methods?- a) It uses total revenue calculations
- b) It is only applicable to perfectly elastic demand
- c) It assesses elasticity at specific points on the demand curve
- d) It requires complex mathematical modeling
Correct answer is option 'C'. Can you explain this answer?
How does the geometric method for measuring elasticity differ from other methods?
a)
It uses total revenue calculations
b)
It is only applicable to perfectly elastic demand
c)
It assesses elasticity at specific points on the demand curve
d)
It requires complex mathematical modeling
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Kamna Science Academy answered |
The geometric method, also known as the point method, assesses elasticity at specific points along the demand curve. This allows for a more precise measurement of elasticity variations at different price and quantity levels, unlike average measures.
What effect does unit elasticity have on total expenditure?- a) Total expenditure increases with a price increase
- b) Total expenditure decreases with a price decrease
- c) Total expenditure is irrelevant in unitary elasticity
- d) Total expenditure remains constant regardless of price changes
Correct answer is option 'D'. Can you explain this answer?
What effect does unit elasticity have on total expenditure?
a)
Total expenditure increases with a price increase
b)
Total expenditure decreases with a price decrease
c)
Total expenditure is irrelevant in unitary elasticity
d)
Total expenditure remains constant regardless of price changes
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Kamna Science Academy answered |
When demand is unit elastic, a change in price does not affect total expenditure. This occurs because the percentage change in quantity demanded is exactly equal to the percentage change in price, leading to no net change in revenue.
In the context of devaluation policy, why is elasticity important?- a) To assess the impact on demand for exports and imports
- b) To maximize government revenue
- c) To stabilize currency values
- d) To predict consumer behavior
Correct answer is option 'A'. Can you explain this answer?
In the context of devaluation policy, why is elasticity important?
a)
To assess the impact on demand for exports and imports
b)
To maximize government revenue
c)
To stabilize currency values
d)
To predict consumer behavior
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Kamna Science Academy answered |
Elasticity is crucial in devaluation policy because it helps predict how demand for exports and imports will change in response to currency fluctuations. Understanding elasticity allows policymakers to anticipate economic impacts and make informed decisions.
Which of the following factors does NOT influence demand elasticity?- a) Total market size
- b) Consumer income
- c) Time period for adjustment
- d) Availability of substitutes
Correct answer is option 'D'. Can you explain this answer?
Which of the following factors does NOT influence demand elasticity?
a)
Total market size
b)
Consumer income
c)
Time period for adjustment
d)
Availability of substitutes
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Nk Classes answered |
Total market size does not directly influence demand elasticity. Instead, factors such as the availability of substitutes, consumer income, and the time period for adjustment play significant roles in determining how responsive demand is to price changes.
How does perfectly elastic demand appear on a graph?- a) A vertical line
- b) A downward sloping line
- c) A steep curve
- d) A horizontal line
Correct answer is option 'D'. Can you explain this answer?
How does perfectly elastic demand appear on a graph?
a)
A vertical line
b)
A downward sloping line
c)
A steep curve
d)
A horizontal line
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EduRev Class 10 answered |
Perfectly elastic demand appears as a horizontal line on a graph. This indicates that even a small change in price leads to an infinite change in quantity demanded, showcasing extreme sensitivity to price changes.
In which case is the price elasticity of demand equal to zero?- a) Unit elastic demand
- b) Perfectly inelastic demand
- c) Elastic demand
- d) Perfectly elastic demand
Correct answer is option 'B'. Can you explain this answer?
In which case is the price elasticity of demand equal to zero?
a)
Unit elastic demand
b)
Perfectly inelastic demand
c)
Elastic demand
d)
Perfectly elastic demand
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EduRev Class 10 answered |
Perfectly inelastic demand occurs when the quantity demanded does not change regardless of price changes, resulting in a price elasticity of demand equal to zero. This scenario is typically seen with essential goods that consumers will buy regardless of price.
What happens to total expenditure when demand is less than unitary elastic?- a) Total expenditure remains constant
- b) Total expenditure decreases when price increases
- c) Total expenditure increases when price decreases
- d) Total expenditure increases regardless of price changes
Correct answer is option 'B'. Can you explain this answer?
What happens to total expenditure when demand is less than unitary elastic?
a)
Total expenditure remains constant
b)
Total expenditure decreases when price increases
c)
Total expenditure increases when price decreases
d)
Total expenditure increases regardless of price changes
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EduRev Class 10 answered |
When demand is less than unitary elastic, total expenditure decreases when the price increases. This is because the percentage change in quantity demanded is smaller than the percentage change in price, leading to a reduction in overall revenue.
What does the concept of price elasticity of demand primarily measure?- a) The responsiveness of quantity demanded to changes in price
- b) The relationship between supply and demand
- c) The total revenue generated by sales
- d) The total market size for a product
Correct answer is option 'A'. Can you explain this answer?
What does the concept of price elasticity of demand primarily measure?
a)
The responsiveness of quantity demanded to changes in price
b)
The relationship between supply and demand
c)
The total revenue generated by sales
d)
The total market size for a product
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EduRev Class 10 answered |
Price elasticity of demand measures how sensitive the quantity demanded of a good is to changes in its price. A higher elasticity indicates that demand significantly changes with price fluctuations, while a lower elasticity suggests that demand is relatively stable despite price changes.
Which of the following scenarios describes inelastic demand?- a) A sharp increase in the quantity demanded with a small price drop
- b) A significant decrease in quantity demanded with a large price increase
- c) Little change in quantity demanded despite a substantial price increase
- d) A stable quantity demanded regardless of price changes
Correct answer is option 'C'. Can you explain this answer?
Which of the following scenarios describes inelastic demand?
a)
A sharp increase in the quantity demanded with a small price drop
b)
A significant decrease in quantity demanded with a large price increase
c)
Little change in quantity demanded despite a substantial price increase
d)
A stable quantity demanded regardless of price changes
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EduRev Class 10 answered |
Inelastic demand is characterized by little change in quantity demanded despite significant price changes. This scenario reflects consumer behavior for essential goods, where price increases do not significantly deter purchases.
If the price elasticity of demand is less than 1, what type of demand is this classified as?- a) Elastic
- b) Perfectly elastic
- c) Inelastic
- d) Unit elastic
Correct answer is option 'C'. Can you explain this answer?
If the price elasticity of demand is less than 1, what type of demand is this classified as?
a)
Elastic
b)
Perfectly elastic
c)
Inelastic
d)
Unit elastic
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Kamna Science Academy answered |
Demand is classified as inelastic when the price elasticity of demand is less than 1. This means that a change in price results in a smaller change in the quantity demanded, indicating that consumers are less responsive to price changes.
When a decrease in price leads to an increase in total expenditure, what type of elasticity is indicated?- a) Less than unitary elastic
- b) Greater than unitary elastic
- c) Perfectly inelastic
- d) Unitary elastic
Correct answer is option 'B'. Can you explain this answer?
When a decrease in price leads to an increase in total expenditure, what type of elasticity is indicated?
a)
Less than unitary elastic
b)
Greater than unitary elastic
c)
Perfectly inelastic
d)
Unitary elastic
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Nk Classes answered |
If a decrease in price results in an increase in total expenditure, it indicates that demand is greater than unitary elastic. This means that consumers are significantly responsive to price changes, resulting in a larger quantity demanded.
What does a vertical demand curve represent?- a) Unitary elastic demand
- b) Perfectly inelastic demand
- c) Elastic demand
- d) Elastic demand
Correct answer is option 'B'. Can you explain this answer?
What does a vertical demand curve represent?
a)
Unitary elastic demand
b)
Perfectly inelastic demand
c)
Elastic demand
d)
Elastic demand
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Nk Classes answered |
A vertical demand curve represents perfectly inelastic demand. In this scenario, the quantity demanded remains constant regardless of price changes, indicating that consumers will purchase the same amount regardless of cost.
If an increase in the price of good Y leads to a decrease in the quantity demanded of good X, what can be said about the relationship between the two goods?- a) They are normal goods
- b) They are complements
- c) They are substitutes
- d) They are unrelated
Correct answer is option 'B'. Can you explain this answer?
If an increase in the price of good Y leads to a decrease in the quantity demanded of good X, what can be said about the relationship between the two goods?
a)
They are normal goods
b)
They are complements
c)
They are substitutes
d)
They are unrelated
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Kamna Science Academy answered |
If an increase in the price of good Y results in a decrease in the quantity demanded of good X, it indicates that the two goods are complements. This means that as the price of one good rises, the demand for the related good falls because they are often used together.
What is indicated by a price elasticity of demand greater than 1?- a) Elastic demand
- b) Inelastic demand
- c) Perfectly elastic demand
- d) Unitary elastic demand
Correct answer is option 'A'. Can you explain this answer?
What is indicated by a price elasticity of demand greater than 1?
a)
Elastic demand
b)
Inelastic demand
c)
Perfectly elastic demand
d)
Unitary elastic demand
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EduRev Class 10 answered |
A price elasticity of demand greater than 1 indicates elastic demand, meaning that consumers are highly responsive to price changes. This implies that a percentage change in price leads to a larger percentage change in the quantity demanded.
Which of the following best defines perfectly elastic demand?- a) Quantity demanded decreases with price decreases
- b) Demand remains constant with price changes
- c) A price change leads to no change in quantity demanded
- d) A small price change results in an infinite change in quantity demanded
Correct answer is option 'D'. Can you explain this answer?
Which of the following best defines perfectly elastic demand?
a)
Quantity demanded decreases with price decreases
b)
Demand remains constant with price changes
c)
A price change leads to no change in quantity demanded
d)
A small price change results in an infinite change in quantity demanded
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Kamna Science Academy answered |
Perfectly elastic demand is defined as a situation where a small change in price leads to an infinite change in quantity demanded. This indicates extreme sensitivity, often seen in highly competitive markets where substitutes are readily available.
How is income elasticity of demand defined?- a) The total revenue generated by a good
- b) The responsiveness of quantity demanded to changes in consumer price
- c) The relationship between two goods' prices
- d) The responsiveness of quantity demanded to changes in consumer income
Correct answer is option 'D'. Can you explain this answer?
How is income elasticity of demand defined?
a)
The total revenue generated by a good
b)
The responsiveness of quantity demanded to changes in consumer price
c)
The relationship between two goods' prices
d)
The responsiveness of quantity demanded to changes in consumer income
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Kamna Science Academy answered |
Income elasticity of demand measures how the quantity demanded of a good changes in response to variations in consumer income. This reflects whether goods are normal (demand increases with income) or inferior (demand decreases with income).
What is the formula for calculating price elasticity of demand?- a) ed = Percentage change in quantity supplied / Percentage change in price
- b) ed = Total revenue / Quantity demanded
- c) ed = Percentage change in quantity demanded / Percentage change in price
- d) ed = Change in price / Change in quantity demanded
Correct answer is option 'C'. Can you explain this answer?
What is the formula for calculating price elasticity of demand?
a)
ed = Percentage change in quantity supplied / Percentage change in price
b)
ed = Total revenue / Quantity demanded
c)
ed = Percentage change in quantity demanded / Percentage change in price
d)
ed = Change in price / Change in quantity demanded
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Nk Classes answered |
The correct formula for calculating price elasticity of demand is ed = Percentage change in quantity demanded / Percentage change in price. This formula provides a measure of how demand responds to price changes, indicating consumer sensitivity.
What does cross elasticity of demand measure?- a) The change in quantity demanded of one good in response to a change in the price of another good
- b) The effect of income changes on demand
- c) The relationship between supply and demand
- d) The total market demand for a product
Correct answer is option 'A'. Can you explain this answer?
What does cross elasticity of demand measure?
a)
The change in quantity demanded of one good in response to a change in the price of another good
b)
The effect of income changes on demand
c)
The relationship between supply and demand
d)
The total market demand for a product
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Nk Classes answered |
Cross elasticity of demand measures how the quantity demanded of one good changes in response to a change in the price of another related good. This concept is essential for understanding the relationships between substitute and complementary goods.
Which method can be used to measure price elasticity of demand?- a) Total Expenditure Method
- b) Demand Supply Method
- c) Average Cost Method
- d) Market Analysis Method
Correct answer is option 'A'. Can you explain this answer?
Which method can be used to measure price elasticity of demand?
a)
Total Expenditure Method
b)
Demand Supply Method
c)
Average Cost Method
d)
Market Analysis Method
|
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Nk Classes answered |
The Total Expenditure Method is one of the three primary methods used to measure price elasticity of demand. It analyzes how total expenditure changes with price variations, providing insights into consumer behavior related to price changes.
Chapter doubts & questions for Elasticity of Demand - Economics Class 10 ICSE 2025 is part of Class 10 exam preparation. The chapters have been prepared according to the Class 10 exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Class 10 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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Economics Class 10 ICSE
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