(A) Production of vitamins
(B) Absorption of water
(C) Absorption of electrolytes
(D) Absorption of amino acids
Author:
When income elasticity of demand is equal to zero, then the good is:
(A) Necessity
(B) Luxury
(C) Poor quality necessity
(D) Inferior good
When income elasticity of demand is greater than one, then the good is:
(A) Luxury
(B) Necessity
(C) Inferior good
(D) Poor quality necessity
When cross elasticity of demand is zero, then two goods are:
(A) Compliments
(B) Substitutes
(C) Not related
(D) Perfect compliments
The absolute value of the coefficient of elasticity of demand ranges from:
(A) Minus infinity to Plus infinity
(B) Zero to infinity
(C) One to infinity
(D) All of the above
Demand is elastic when:
(A) Price level is high
(B) More substitutes are available
(C) Income of the consumer is less
(D) All of the above
Coefficient of elasticity of demand is negative. It means:
(A) Consumers sometimes buy negative units of a commodity
(B) Price and quantity demanded move in same direction
(C) Law of demand holds
(D) The two goods are complementary to each other
When there is fall in the price of complementary good and rise in the price of substitute good, it shows:
(A) Decrease in demand
(B) Increase in demand
(C) Contraction in demand
(D) Expansion in demand