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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 āϚাāĻšিāĻĻা āĻŦāĻ•্ā§° ā§ąাāχ-āĻ…āĻ•্āώ⧰ āϏāĻŽাāύ্āϤ⧰াāϞ āĻšāϝ়, āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻšৈāĻ›ে 

(a) Equal to unity

āĻāĻ•āϤাā§° āϏāĻŽাāύ

(b) More than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•

(c) Less than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ

(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 āϏাāĻŽāĻ—্ā§°ী āĻāϟাā§° āĻŽূāϞ্āϝ āĻš্ā§°াāϏ āĻšোā§ąাā§° āϏৈāϤে, āĻŽুāĻ  āĻŦ্āϝāϝ়āĻ“ āĻš্ā§°াāϏ āĻšāϝ়, āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻšāϝ়

(a) More than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•

(b) Less than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ

(c) Equal to unity

āĻāĻ•āϤাā§° āϏāĻŽাāύ

Answer: (b) Less than unity (āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ)।

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 āφ⧰ু āϚাāĻšিāĻĻাā§° āĻĒā§°িā§ąā§°্āϤāύ 14 āĻļāϤাংāĻļ āĻšāϝ়, āχāĻĒি āĻšৈāĻ›ে

(a) More than unity 

āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ• 

(b) Equal to unity

āĻāĻ•āϤাā§° āϏāĻŽাāύ

(c) Less than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ

Answer: (a) More than unity (āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•)।

4. If MPC= 0.8 And APC= 0.6, Then income elasticity of demand is

āϝāĻĻি āĻāĻŽāĻĒিāϚি= 0.8 āφ⧰ু āĻāĻĒিāϚি= 0.6, āϤেāύেāĻš'āϞে āϚাāĻšিāĻĻাā§° āωāĻĒাā§°্āϜāύāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻšৈāĻ›ে

(a) Less than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ

(b) Equal to unity

āĻāĻ•āϤাā§° āϏāĻŽাāύ

(c) More than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•

Answer: (c) More than unity (āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•)।

5. In case of inferior goods the income elasticity of demand is

āύিāĻŽ্āύāĻŽাāύ⧰ āϏাāĻŽāĻ—্ā§°ীā§° āĻ•্āώেāϤ্ā§°āϤ āϚাāĻšিāĻĻাā§° āωāĻĒাā§°্āϜāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻšৈāĻ›ে

(a) Positive 

āϧāĻŖাāϤ্āĻŽāĻ• 

(b) Negative 

āĻ‹āĻŖাāϤ্āĻŽāĻ•

(c) Zero

āĻļূāύ্āϝ

Answer: (b) Negative (āĻ‹āĻŖাāϤ্āĻŽāĻ•)।

6. If cross-elasticity of demand is less than zero, the goods are

āϝāĻĻি āϚাāĻšিāĻĻাā§° āĻ•্ā§°āĻ›-āχāϞাāώ্āϟিāϚিāϟি āĻļূāύ্āϝāϤāĻ•ৈ āĻ•āĻŽ āĻšāϝ়, āϏাāĻŽāĻ—্ā§°ীāĻŦোā§° āĻšৈāĻ›ে

(a) Complements 

āĻĒā§°িāĻĒূā§°āĻ• 

(b) Substitutes

 āĻŦিāĻ•āϞ্āĻĒāϏāĻŽূāĻš

(c) Not related

āϏāĻŽ্āĻĒā§°্āĻ•িāϤ āύāĻšāϝ়

Answer: (a) Complements (āĻĒā§°িāĻĒূā§°āĻ•)।

7. If AQ = 10, AP = 5, Q = 50, P = 20, then the elasticity of supply is  

āϝāĻĻি āĻāĻ•িāω = 10, āĻāĻĒি = 5, āĻ•িāω = 50, āĻĒ = 20, āϤেāύেāĻš'āϞে āϝোāĻ—াāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻšৈāĻ›ে  

(a) Equal to unity

āĻāĻ•āϤাā§° āϏāĻŽাāύ

(b) Less than unity 

āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ 

(c) More than unity

āĻāĻ•āϤাāϤāĻ•ৈ āĻ…āϧিāĻ•

Answer: (b) Less than unity (āĻāĻ•āϤাāϤāĻ•ৈ āĻ•āĻŽ)।

Very Short Answer Type Questions  

āĻ…āϤি āϚāĻŽু āωāϤ্āϤ⧰ āĻĒ্ā§°āĻ•াā§°ā§° āĻĒ্ā§°āĻļ্āύ

1. Define price elasticity of demand. 

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āύিā§°্āϧাā§°āĻŖ āϕ⧰া।   

Answer:

2. What is income elasticity of demand?

āϚাāĻšিāĻĻাā§° āωāĻĒাā§°্āϜāύāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•ি?

Answer:  

3. What is cross-elasticity of demand? 

āϚাāĻšিāĻĻাā§° āĻ•্ā§°āĻ›-āχāϞাāώ্āϟিāϚিāϟি āĻ•ি?

Answer:  

4. What is are elasticity?

āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•ি? 

Answer: 

5. Find the elasticity of demand when a straight line downward sloping demand curve touches X-axis.

āϚাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āύিā§°্āĻŖāϝ় āϕ⧰āĻ• āϝেāϤিāϝ়া āĻāĻ• āϏ⧰āϞ ā§°েāĻ–া āϤāϞāϞৈ āĻšেāϞāύীāϝ়া āϚাāĻšিāĻĻা āĻŦāĻ•্ā§°āχ āĻāĻ•্āϏ-āĻ…āĻ•্āώ āϏ্āĻĒā§°্āĻļ āϕ⧰ে।

Answer:  

6. "The cross-elasticity of demand is positive." Identify the nature of the commodity. 

"āϚাāĻšিāĻĻাā§° āĻ•্ā§°āĻ›-āχāϞাāώ্āϟিāϚিāϟি āχāϤিāĻŦাāϚāĻ•।" āϏাāĻŽāĻ—্ā§°ীā§° āĻĒ্ā§°āĻ•ৃāϤি āϚিāύাāĻ•্āϤ āϕ⧰া।   

Answer: 

7. What are the methods for measuring price elasticity of demand?  

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āϜোāĻ–াā§° āĻĒāĻĻ্āϧāϤিāĻŦোā§° āĻ•ি?

Answer: 

Short Answer Type Questions  

āϚāĻŽু āωāϤ্āϤ⧰āĻĒ্ā§°āĻ•াā§°ā§° āĻĒ্ā§°āĻļ্āύ  

1. Define elasticity of demand. 

āϚাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āύিā§°্āϧাā§°āĻŖ āϕ⧰া।  

Answer: 

2. Distinguish between price elasticity and cross-elasticity of demand.

āĻŽূāϞ্āϝāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āφ⧰ু āϚাāĻšিāĻĻাā§° āĻ•্ā§°āĻ›-āχāϞাāώ্āϟিāϚিāϟিā§° āĻŽাāϜāϤ āĻĒাā§°্āĻĨāĻ•্āϝ āϕ⧰া।

Answer:   

3. What are the degrees of price elasticity of demand? 

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āĻĄিāĻ—্ā§°ীāĻŦোā§° āĻ•ি? 

Answer:  

4. Give the formula for measuring Ep through the proportionate method. 

āϏāĻŽাāύুāĻĒাāϤিāĻ• āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āχāĻĒি āϜোāĻ–াā§° āϏূāϤ্ā§°āϟো āĻĻিāϝ়া।

Answer:  

5. State the formula in arc method for measuring price elasticity of demand?

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āϜোāĻ–াā§° āĻŦাāĻŦে āφ⧰্āĻ• āĻĒāĻĻ্āϧāϤিāϤ āϏূāϤ্ā§°āϟো āωāϞ্āϞেāĻ– āϕ⧰িāĻŦ āύেāĻ•ি?

Answer:   

6. What are the degrees of cross elasticity of demand?

āϚাāĻšিāĻĻাā§° āĻ•্ā§°āĻ› āχāϞাāώ্āϟিāϚিāϟিā§° āĻĄিāĻ—্ā§°ীāĻŦোā§° āĻ•ি?

Answer:   

7. What is Bandwagon effect?

āĻŦেāĻŖ্āĻĄā§ąাāĻ—āύ āĻĒ্ā§°āĻ­াā§ą āĻ•ি?

Answer:  

8. Define Snob effect.

āϏ্āύোāĻŦ āĻĒ্ā§°āĻ­াā§ą āύিā§°্āϧাā§°āĻŖ āϕ⧰া।

Answer:   

9. What is Veblen effect? 

āĻ­েāĻŦāϞāύ āĻĒ্ā§°āĻ­াā§ą āĻ•ি?

Answer:  

10. How is the elasticity of supply measured through the point method?

āĻŦিāύ্āĻĻু āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āϝোāĻ—াāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•েāύেāĻĻā§°ে āϜোāĻ–া āĻšāϝ়?

Answer: 

Long Answer Type Questions  

āĻĻীāϘāϞীāϝ়া āωāϤ্āϤ⧰⧰ āĻĒ্ā§°āĻļ্āύ 

1. What is price elasticity of demand? What are its degrees?

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•ি? āχāϝ়াā§° āĻĄিāĻ—্ā§°ীāĻŦোā§° āĻ•ি?

Answer:  

2. Will a decrease in a commodity price increase expenditure on that commodity ? Why.  

āϏাāĻŽāĻ—্ā§°ীā§° āĻŽূāϞ্āϝ āĻš্ā§°াāϏ āĻš'āϞে āϏেāχ āϏাāĻŽāĻ—্ā§°ীā§° āĻ“āĻĒā§°āϤ āĻŦ্āϝāϝ় āĻŦৃāĻĻ্āϧি āĻš'āĻŦ āύেāĻ•ি? āĻ•িāϝ়। 

Answer:  

3. Explain the proportionate method for measuring price elasticity of demand.  

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āϜোāĻ–াā§° āĻŦাāĻŦে āϏāĻŽাāύুāĻĒাāϤিāĻ• āĻĒāĻĻ্āϧāϤিāĻŦ্āϝাāĻ–্āϝা āϕ⧰া।  

Answer:  

4. How can price elasticity of demand be measured through point method?  

āĻŦিāύ্āĻĻু āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•েāύেāĻĻā§°ে āϜোāĻ–া āϝাāϝ়?

Answer:  

5. Discuss the arc elasticity of demand.

āϚাāĻšিāĻĻাā§° āφ⧰্āĻ• āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āφāϞোāϚāύা āϕ⧰া।  

Answer:  

6. What is cross elasticity of demand? How can it be measured.  

āϚাāĻšিāĻĻাā§° āφ⧰্āĻ• āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āφāϞোāϚāύা āϕ⧰া।

Answer:  

7. What is income elasticity of demand ? How can it be measured? 

āϚাāĻšিāĻĻাā§° āωāĻĒাā§°্āϜāύāϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•ি? āχāϝ়াāĻ• āĻ•েāύেāĻ•ৈ āϜোāĻ–া āϝাāϝ়?  

Answer:  

8. What is meant by elasticity of supply? How can it he quantified?

āϝোāĻ—াāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āĻ…ā§°্āĻĨ āĻ•ি? āϤেāĻ“ঁ āĻ•েāύেāĻ•ৈ āĻĒā§°িāĻŽাāĻŖ āύিā§°্āϧাā§°āĻŖ āϕ⧰িāĻŦ āĻĒাā§°ে?   

Answer:  

9. What are the applications of elasticity of demand.

āϚাāĻšিāĻĻাā§° āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āĻĒ্ā§°āϝ়োāĻ— āĻ•ি।  

Answer:  

Very Long Answer Type Questions

āĻ…āϤি āĻĻীāϘāϞীāϝ়া āωāϤ্āϤ⧰ āĻĒ্ā§°āĻ•াā§°ā§° āĻĒ্ā§°āĻļ্āύ

1. Discuss the different methods for measuring price elasticity of demand.  

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āϜোāĻ–াā§° āĻŦাāĻŦে āĻŦিāĻ­িāύ্āύ āĻĒāĻĻ্āϧāϤিāφāϞোāϚāύা āϕ⧰া। 

Answer:  

2. Explain the point method for measuring price elasticity of demand. 

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āϜোāĻ–াā§° āĻŦাāĻŦে āĻŦিāύ্āĻĻু āĻĒāĻĻ্āϧāϤিāϟো āĻŦā§°্āĻŖāύা āϕ⧰া। 

Answer:  

3. Explain the relation between slope of demand curve and price elasticity of demand.

āϚাāĻšিāĻĻা āĻŦāĻ•্ā§°ā§° āĻĸাāϞ āφ⧰ু āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤাā§° āĻŽাāϜ⧰ āϏāĻŽ্āĻĒā§°্āĻ• āĻŦā§°্āĻŖāύা āϕ⧰া।   

Answer:  

4. Discuss the concepts of price, income and cross-elasticity of demand.  

āĻŽূāϞ্āϝ, āωāĻĒাā§°্āϜāύ āφ⧰ু āϚাāĻšিāĻĻাā§° āĻ•্ā§°āĻ›-āχāϞাāώ্āϟিāϚিāϟিā§° āϧাā§°āĻŖাāĻŦোā§° āφāϞোāϚāύা āϕ⧰া। 

Answer:  

5. Explain the factors that influence price-elasticity of demand. 

āϚাāĻšিāĻĻাā§° āĻŽূāϞ্āϝ-āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻĒ্ā§°āĻ­াā§ąিāϤ āϕ⧰া āĻ•াā§°āĻ•āĻŦোā§° āĻŦā§°্āĻŖāύা āϕ⧰া। 

Answer:  

6. What is elasticity of supply? How can it be measured?

āϝোāĻ—াāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•ি? āχāϝ়াāĻ• āĻ•েāύেāĻ•ৈ āϜোāĻ–া āϝাāϝ়?   

Answer:  

7. How can elasticity of supply be measured ? Give its applications. 

āϝোāĻ—াāύ⧰ āϏ্āĻĨিāϤিāϏ্āĻĨাāĻĒāĻ•āϤা āĻ•েāύেāĻĻā§°ে āϜোāĻ–া āϝাāϝ়? āχāϝ়াā§° āĻāĻĒ্āϞিāĻ•েāϚāύāĻŦোā§° āĻĻিāϝ়āĻ•। 

Answer:


Question Type_Bhabesh Bora.



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