Chapter 7
Elasticities of Demand and Supply
Multiple Choice Questions
1. If demand curve is parallel to Y-axis, the price elasticity of demand is
āϝāĻĻি āĻাāĻšিāĻĻা āĻŦāĻ্ā§° ā§ąাāĻ-āĻ āĻ্āώ⧰ āϏāĻŽাāύ্āϤ⧰াāϞ āĻšāϝ়, āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻšৈāĻে
(a) Equal to unity
āĻāĻāϤাā§° āϏāĻŽাāύ
(b) More than unity
āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ
(c) Less than unity
āĻāĻāϤাāϤāĻৈ āĻāĻŽ
(d) Zero
āĻļূāύ্āϝ
(e) Infinity.
āĻ āϏীāĻŽ।
Answer: (d) Zero (āĻļূāύ্āϝ)।
2. If with a fall in price of a commodity, the total outlay also falls, the price elasticity of demand is
āϝāĻĻি āϏাāĻŽāĻ্ā§°ী āĻāĻাā§° āĻŽূāϞ্āϝ āĻš্ā§°াāϏ āĻšোā§ąাā§° āϏৈāϤে, āĻŽুāĻ āĻŦ্āϝāϝ়āĻ āĻš্ā§°াāϏ āĻšāϝ়, āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻšāϝ়
(a) More than unity
āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ
(b) Less than unity
āĻāĻāϤাāϤāĻৈ āĻāĻŽ
(c) Equal to unity
āĻāĻāϤাā§° āϏāĻŽাāύ
Answer: (b) Less than unity (āĻāĻāϤাāϤāĻৈ āĻāĻŽ)।
3. If Change in price is 10 percent and the change in demand is 14 percent, the Ep is
āϝāĻĻি āĻŽূāϞ্āϝ⧰ āĻĒā§°িā§ąā§°্āϤāύ 10 āĻļāϤাংāĻļ āĻšāϝ় āĻā§°ু āĻাāĻšিāĻĻাā§° āĻĒā§°িā§ąā§°্āϤāύ 14 āĻļāϤাংāĻļ āĻšāϝ়, āĻāĻĒি āĻšৈāĻে
(a) More than unity
āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ
(b) Equal to unity
āĻāĻāϤাā§° āϏāĻŽাāύ
(c) Less than unity
āĻāĻāϤাāϤāĻৈ āĻāĻŽ
Answer: (a) More than unity (āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ)।
4. If MPC= 0.8 And APC= 0.6, Then income elasticity of demand is
āϝāĻĻি āĻāĻŽāĻĒিāĻি= 0.8 āĻā§°ু āĻāĻĒিāĻি= 0.6, āϤেāύেāĻš'āϞে āĻাāĻšিāĻĻাā§° āĻāĻĒাā§°্āĻāύāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻšৈāĻে
(a) Less than unity
āĻāĻāϤাāϤāĻৈ āĻāĻŽ
(b) Equal to unity
āĻāĻāϤাā§° āϏāĻŽাāύ
(c) More than unity
āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ
Answer: (c) More than unity (āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ)।
5. In case of inferior goods the income elasticity of demand is
āύিāĻŽ্āύāĻŽাāύ⧰ āϏাāĻŽāĻ্ā§°ীā§° āĻ্āώেāϤ্ā§°āϤ āĻাāĻšিāĻĻাā§° āĻāĻĒাā§°্āĻāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻšৈāĻে
(a) Positive
āϧāĻŖাāϤ্āĻŽāĻ
(b) Negative
āĻāĻŖাāϤ্āĻŽāĻ
(c) Zero
āĻļূāύ্āϝ
Answer: (b) Negative (āĻāĻŖাāϤ্āĻŽāĻ)।
6. If cross-elasticity of demand is less than zero, the goods are
āϝāĻĻি āĻাāĻšিāĻĻাā§° āĻ্ā§°āĻ-āĻāϞাāώ্āĻিāĻিāĻি āĻļূāύ্āϝāϤāĻৈ āĻāĻŽ āĻšāϝ়, āϏাāĻŽāĻ্ā§°ীāĻŦোā§° āĻšৈāĻে
(a) Complements
āĻĒā§°িāĻĒূā§°āĻ
(b) Substitutes
āĻŦিāĻāϞ্āĻĒāϏāĻŽূāĻš
(c) Not related
āϏāĻŽ্āĻĒā§°্āĻিāϤ āύāĻšāϝ়
Answer: (a) Complements (āĻĒā§°িāĻĒূā§°āĻ)।
7. If AQ = 10, AP = 5, Q = 50, P = 20, then the elasticity of supply is
āϝāĻĻি āĻāĻিāĻ = 10, āĻāĻĒি = 5, āĻিāĻ = 50, āĻĒ = 20, āϤেāύেāĻš'āϞে āϝোāĻাāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻšৈāĻে
(a) Equal to unity
āĻāĻāϤাā§° āϏāĻŽাāύ
(b) Less than unity
āĻāĻāϤাāϤāĻৈ āĻāĻŽ
(c) More than unity
āĻāĻāϤাāϤāĻৈ āĻ āϧিāĻ
Answer: (b) Less than unity (āĻāĻāϤাāϤāĻৈ āĻāĻŽ)।
Very Short Answer Type Questions
āĻ āϤি āĻāĻŽু āĻāϤ্āϤ⧰ āĻĒ্ā§°āĻাā§°ā§° āĻĒ্ā§°āĻļ্āύ
1. Define price elasticity of demand.
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āύিā§°্āϧাā§°āĻŖ āĻā§°া।
Answer:
2. What is income elasticity of demand?
āĻাāĻšিāĻĻাā§° āĻāĻĒাā§°্āĻāύāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻি?
Answer:
3. What is cross-elasticity of demand?
āĻাāĻšিāĻĻাā§° āĻ্ā§°āĻ-āĻāϞাāώ্āĻিāĻিāĻি āĻি?
Answer:
4. What is are elasticity?
āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻি?
Answer:
5. Find the elasticity of demand when a straight line downward sloping demand curve touches X-axis.
āĻাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āύিā§°্āĻŖāϝ় āĻā§°āĻ āϝেāϤিāϝ়া āĻāĻ āϏ⧰āϞ ā§°েāĻা āϤāϞāϞৈ āĻšেāϞāύীāϝ়া āĻাāĻšিāĻĻা āĻŦāĻ্ā§°āĻ āĻāĻ্āϏ-āĻ āĻ্āώ āϏ্āĻĒā§°্āĻļ āĻā§°ে।
Answer:
6. "The cross-elasticity of demand is positive." Identify the nature of the commodity.
"āĻাāĻšিāĻĻাā§° āĻ্ā§°āĻ-āĻāϞাāώ্āĻিāĻিāĻি āĻāϤিāĻŦাāĻāĻ।" āϏাāĻŽāĻ্ā§°ীā§° āĻĒ্ā§°āĻৃāϤি āĻিāύাāĻ্āϤ āĻā§°া।
Answer:
7. What are the methods for measuring price elasticity of demand?
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻোāĻাā§° āĻĒāĻĻ্āϧāϤিāĻŦোā§° āĻি?
Answer:
Short Answer Type Questions
āĻāĻŽু āĻāϤ্āϤ⧰āĻĒ্ā§°āĻাā§°ā§° āĻĒ্ā§°āĻļ্āύ
1. Define elasticity of demand.
āĻাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āύিā§°্āϧাā§°āĻŖ āĻā§°া।
Answer:
2. Distinguish between price elasticity and cross-elasticity of demand.
āĻŽূāϞ্āϝāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻā§°ু āĻাāĻšিāĻĻাā§° āĻ্ā§°āĻ-āĻāϞাāώ্āĻিāĻিāĻিā§° āĻŽাāĻāϤ āĻĒাā§°্āĻĨāĻ্āϝ āĻā§°া।
Answer:
3. What are the degrees of price elasticity of demand?
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤাā§° āĻĄিāĻ্ā§°ীāĻŦোā§° āĻি?
Answer:
4. Give the formula for measuring Ep through the proportionate method.
āϏāĻŽাāύুāĻĒাāϤিāĻ āĻĒāĻĻ্āϧāϤিā§° āĻā§°িāϝ়āϤে āĻāĻĒি āĻোāĻাā§° āϏূāϤ্ā§°āĻো āĻĻিāϝ়া।
Answer:
5. State the formula in arc method for measuring price elasticity of demand?
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻোāĻাā§° āĻŦাāĻŦে āĻā§°্āĻ āĻĒāĻĻ্āϧāϤিāϤ āϏূāϤ্ā§°āĻো āĻāϞ্āϞেāĻ āĻā§°িāĻŦ āύেāĻি?
Answer:
6. What are the degrees of cross elasticity of demand?
āĻাāĻšিāĻĻাā§° āĻ্ā§°āĻ āĻāϞাāώ্āĻিāĻিāĻিā§° āĻĄিāĻ্ā§°ীāĻŦোā§° āĻি?
Answer:
7. What is Bandwagon effect?
āĻŦেāĻŖ্āĻĄā§ąাāĻāύ āĻĒ্ā§°āĻাā§ą āĻি?
Answer:
8. Define Snob effect.
āϏ্āύোāĻŦ āĻĒ্ā§°āĻাā§ą āύিā§°্āϧাā§°āĻŖ āĻā§°া।
Answer:
9. What is Veblen effect?
āĻেāĻŦāϞāύ āĻĒ্ā§°āĻাā§ą āĻি?
Answer:
10. How is the elasticity of supply measured through the point method?
āĻŦিāύ্āĻĻু āĻĒāĻĻ্āϧāϤিā§° āĻā§°িāϝ়āϤে āϝোāĻাāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻেāύেāĻĻā§°ে āĻোāĻা āĻšāϝ়?
Answer:
Long Answer Type Questions
āĻĻীāĻāϞীāϝ়া āĻāϤ্āϤ⧰⧰ āĻĒ্ā§°āĻļ্āύ
1. What is price elasticity of demand? What are its degrees?
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻি? āĻāϝ়াā§° āĻĄিāĻ্ā§°ীāĻŦোā§° āĻি?
Answer:
2. Will a decrease in a commodity price increase expenditure on that commodity ? Why.
āϏাāĻŽāĻ্ā§°ীā§° āĻŽূāϞ্āϝ āĻš্ā§°াāϏ āĻš'āϞে āϏেāĻ āϏাāĻŽāĻ্ā§°ীā§° āĻāĻĒā§°āϤ āĻŦ্āϝāϝ় āĻŦৃāĻĻ্āϧি āĻš'āĻŦ āύেāĻি? āĻিāϝ়।
Answer:
3. Explain the proportionate method for measuring price elasticity of demand.
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻোāĻাā§° āĻŦাāĻŦে āϏāĻŽাāύুāĻĒাāϤিāĻ āĻĒāĻĻ্āϧāϤিāĻŦ্āϝাāĻ্āϝা āĻā§°া।
Answer:
4. How can price elasticity of demand be measured through point method?
āĻŦিāύ্āĻĻু āĻĒāĻĻ্āϧāϤিā§° āĻā§°িāϝ়āϤে āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻেāύেāĻĻā§°ে āĻোāĻা āϝাāϝ়?
Answer:
5. Discuss the arc elasticity of demand.
āĻাāĻšিāĻĻাā§° āĻā§°্āĻ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻāϞোāĻāύা āĻā§°া।
Answer:
6. What is cross elasticity of demand? How can it be measured.
āĻাāĻšিāĻĻাā§° āĻā§°্āĻ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻāϞোāĻāύা āĻā§°া।
Answer:
7. What is income elasticity of demand ? How can it be measured?
āĻাāĻšিāĻĻাā§° āĻāĻĒাā§°্āĻāύāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻি? āĻāϝ়াāĻ āĻেāύেāĻৈ āĻোāĻা āϝাāϝ়?
Answer:
8. What is meant by elasticity of supply? How can it he quantified?
āϝোāĻাāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤাā§° āĻ ā§°্āĻĨ āĻি? āϤেāĻঁ āĻেāύেāĻৈ āĻĒā§°িāĻŽাāĻŖ āύিā§°্āϧাā§°āĻŖ āĻā§°িāĻŦ āĻĒাā§°ে?
Answer:
9. What are the applications of elasticity of demand.
āĻাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤাā§° āĻĒ্ā§°āϝ়োāĻ āĻি।
Answer:
Very Long Answer Type Questions
āĻ āϤি āĻĻীāĻāϞীāϝ়া āĻāϤ্āϤ⧰ āĻĒ্ā§°āĻাā§°ā§° āĻĒ্ā§°āĻļ্āύ
1. Discuss the different methods for measuring price elasticity of demand.
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻোāĻাā§° āĻŦাāĻŦে āĻŦিāĻিāύ্āύ āĻĒāĻĻ্āϧāϤিāĻāϞোāĻāύা āĻā§°া।
Answer:
2. Explain the point method for measuring price elasticity of demand.
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻোāĻাā§° āĻŦাāĻŦে āĻŦিāύ্āĻĻু āĻĒāĻĻ্āϧāϤিāĻো āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
3. Explain the relation between slope of demand curve and price elasticity of demand.
āĻাāĻšিāĻĻা āĻŦāĻ্ā§°ā§° āĻĸাāϞ āĻā§°ু āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤাā§° āĻŽাāĻā§° āϏāĻŽ্āĻĒā§°্āĻ āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
4. Discuss the concepts of price, income and cross-elasticity of demand.
āĻŽূāϞ্āϝ, āĻāĻĒাā§°্āĻāύ āĻā§°ু āĻাāĻšিāĻĻাā§° āĻ্ā§°āĻ-āĻāϞাāώ্āĻিāĻিāĻিā§° āϧাā§°āĻŖাāĻŦোā§° āĻāϞোāĻāύা āĻā§°া।
Answer:
5. Explain the factors that influence price-elasticity of demand.
āĻাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ-āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻĒ্ā§°āĻাā§ąিāϤ āĻā§°া āĻাā§°āĻāĻŦোā§° āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
6. What is elasticity of supply? How can it be measured?
āϝোāĻাāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻি? āĻāϝ়াāĻ āĻেāύেāĻৈ āĻোāĻা āϝাāϝ়?
Answer:
7. How can elasticity of supply be measured ? Give its applications.
āϝোāĻাāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻāϤা āĻেāύেāĻĻā§°ে āĻোāĻা āϝাāϝ়? āĻāϝ়াā§° āĻāĻĒ্āϞিāĻেāĻāύāĻŦোā§° āĻĻিāϝ়āĻ।
Answer:
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