Q. when income increases, quantity demanded falls, it is
✅ Correct Answer: (C)
Negative income elasticity
Managerial Economics 1 MCQs and Notes
Q. For the commodities like salt, sugar etc.,the income elasticity will be
✅ Correct Answer: (A)
Zero
Q. ……… shows the change in quantity demanded as a result of a change in consumers’ income
✅ Correct Answer: (C)
Income elasticity
Q. Unitary elasticity of demand mean
✅ Correct Answer: (D)
EP = 1
Q. In the case of unitary elastic demand, the shape of demand curve is
✅ Correct Answer: (C)
Rectangular hyperbola
Q. EP = ………in case of relatively inelastic demand
✅ Correct Answer: (D)
<1
Q. EP =………….in the case of relatively elastic demand
✅ Correct Answer: (B)
>1
Q. in the case of perfect inelasticity, the demand curve is
✅ Correct Answer: (A)
Vertical
Q. Ep = 0 in the case of ‐‐‐‐‐‐‐‐‐‐‐elasticity
✅ Correct Answer: (B)
Perfectly inelastic demand
Q. When the change in demand is exactly equal to the change in price, it is called
✅ Correct Answer: (D)
Unitary elastic demand