(A) Inferior goods.
(B) Normal goods.
(C) Substitute goods.
(D) Complementary goods.
Tag: Economics Mcqs With Answers
The burden (incidence) of a tax will fall mainly on the producers if:
(A) The producers are the ones legally obliged to pay the tax.
(B) Supply is inelastic and demand is elastic.
(C) Demand is inelastic and supply is elastic.
(D) There are many producers in the market.
f the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between beef and chicken is?
(A) -4.
(B) 4.
(C) -0.25.
(D) 0.25.
If the cross-price elasticity of demand between two goods is negative, then the two goods are?
(A) unrelated goods.
(B) substitutes.
(C) complements.
(D) normal goods.
The price of apples falls by 5% and quantity demanded increases by 6%. Demand for apples is?
(A) inelastic.
(B) perfectly inelastic.
(C) elastic.
(D) perfectly elastic.
The price of bread increases by 22% and the quantity of bread demanded falls by 25%. This indicates that demand for bread is?
(A) elastic.
(B) inelastic.
(C) unitarily elastic
(D) perfectly elastic
The price elasticity of demand is the?
(A) ratio of the percentage change in quantity demanded to the percentage change in
price.
(B) ratio of the change in price to the change in quantity demanded.
(C) ratio of the change in quantity demanded to the change in price.
(D) ratio of the percentage change in price to the percentage change in quantity
demanded.
When the decrease in the price of one good causes the demand for another good to decrease, the goods are?
(A) complements.
(B) normal.
(C) inferior.
(D) substitutes.