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    Monthly Test - I: JULY 2020

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    me no one
    This document is a monthly test from The Indian Public School for Grade 9 students. It contains 20 multiple choice questions and 5 structured questions about price elasticity of demand and supply. The test covers key concepts like the definitions of price elasticity of demand and supply, factors that influence elasticity, calculating elasticity from data, and implications of elastic vs inelastic demand and supply. It is designed to evaluate students' understanding of these important microeconomics concepts through a variety of question types and scenarios.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Monthly Test - I: JULY 2020

    Uploaded by

    me no one
    73 views7 pages
    This document is a monthly test from The Indian Public School for Grade 9 students. It contains 20 multiple choice questions and 5 structured questions about price elasticity of demand and supply. The test covers key concepts like the definitions of price elasticity of demand and supply, factors that influence elasticity, calculating elasticity from data, and implications of elastic vs inelastic demand and supply. It is designed to evaluate students' understanding of these important microeconomics concepts through a variety of question types and scenarios.

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    eco exam

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    This document is a monthly test from The Indian Public School for Grade 9 students. It contains 20 multiple choice questions and 5 structured questions about price elasticity of demand and supply. The test covers key concepts like the definitions of price elasticity of demand and supply, factors that influence elasticity, calculating elasticity from data, and implications of elastic vs inelastic demand and supply. It is designed to evaluate students' understanding of these important microeconomics concepts through a variety of question types and scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    73 views7 pages

    Monthly Test - I: JULY 2020

    Uploaded by

    me no one
    This document is a monthly test from The Indian Public School for Grade 9 students. It contains 20 multiple choice questions and 5 structured questions about price elasticity of demand and supply. The test covers key concepts like the definitions of price elasticity of demand and supply, factors that influence elasticity, calculating elasticity from data, and implications of elastic vs inelastic demand and supply. It is designed to evaluate students' understanding of these important microeconomics concepts through a variety of question types and scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 7

    THE INDIAN PUBLIC SCHOOL

    MONTHLY TEST - I
    JULY 2020

    NAME:_________________ GRADE & SEC: IX _____ DATE:14/07/2020


    21/07/2020

    SUBJECT :ECONOMICS

    TOPIC: Price elasticity of Demand, Price Elasticity of Supply

    TOTAL MARKS: 40 _______

    DURATION: 40 _____________
    Minutes
    1 HOUR

    MARKS OBTAINED: SIGNATURE OF THE FACILITATOR:

    _____________________________

    This question paper contains 7 pages

    1
    1 2 3 4 5 6 7 8 9 10

    11 12 13 14 15 16 17 18 19 20

    1. What is price elasticity of demand?


    A. A measure of the extent to which prices changes when the quantity demanded
    changes.
    B. A measure of the extent to which the quantity demanded changes when price
    changes.
    C. A measure of the extent to which total revenue changes when price changes.
    D. A measure of the extent to which prices changes when total revenue changes.
    2. What characteristics likely to make the demand for a product elastic?
    A. It is a necessity
    B. It is a habit forming
    C. It is relatively cheap
    D. It has close substitutes.
    3. The price of guided tour holidays to India increased by 10% in 2017and the quantity
    demanded fell by 4%. Which is true?
    A. The price elasticity of demand is 0.4 and elastic
    B. The price elasticity of demand is 0.4 and inelastic
    C. The price elasticity of demand is 2.5 and elastic
    D. The price elasticity of demand is 2.5 and inelastic
    4. What does a PES of 0.8 indicate?
    A. Supply is perfectly elastic
    B. Supply is elastic
    C. Supply is inelastic
    D. Supply is perfectly inelastic
    5. The table shows the quantity that producers are willing to supply at different price
    levels.
    Price ($) Quantity Supplied
    120 20
    150 30
    180 40

    If the price increases from $120 to $180, what would be the price elasticity of supply?
    A 2B 3 C 4D 2
    2
    6. A railway company increases ticket prices by 10% for travel between 06:00 and 09:00,
    causing a reduction in demand by 2%. After 09:00 it reduces ticket prices by 5%,
    resulting in a 7% increase in demand.
    What is the price elasticity of demand in response to these price changes?

    Between 06:00 and 09.00 After 09:00

    A Elastic Elastic
    B Elastic Inelastic
    C Inelastic Elastic
    D Inelastic Inelastic

    7. Which among the following is an elastic supply curve?

    A B

    Price Price

    Quantity Quantity
    C D

    PricePrice

    Quantity Quantity

    3
    8. What is the relationship between price and total revenue if the price elasticity of
    demand is elastic?
    A. Price and total revenue moves in the same direction
    B. Price and total revenue moves in the opposite direction
    C. Price and total revue are directly related
    D. Price and total revenue are no relationships
    9. The demand for a commodity is price-inelastic. What is most likely to happen?
    A. The producer can charge high price
    B. The producer may get loss
    C. The consumer can get an advantage
    D. The consumer will maximize satisfaction
    10. The perfectly inelastic supply curve look like a
    A. Shallow curve
    B. Steep curve
    C. Vertical line
    D. Horizontal line
    11. Price elasticity of demand (PED) measures the responsiveness of demand to a change in
    price. It can differ for different goods. For which good is the PED most elastic according
    to the table?
    Good Percentage change Percentage change
    in quantity in price
    demanded
    A Butter 6.0 5.0
    B Cars 5.5 5.0
    C Furniture 5.0 5.0
    D Petrol 3.0 5.

    12. In what circumstances would supply of a product be elastic?


    A. It is costly to produce
    B. It takes time to produce
    C. It can be stored.
    D. It uses resources which are in short supply.

    4
    13. The table shows the demand schedule for a good at different prices.

    Price ($) Quantity demanded


    8 200
    10 160
    12 120
    14 60

    The current market price for the good is $10. Following a 20% increase in price, what
    will be the change in the quantity demanded?
    A – 60 B – 40 C +120 D +200
    14. The PES for a product is 1.5. If the price increases by 2% which of these is correct for the
    percentage increase in the quantity supplied?
    A. 0.5
    B. 0.75
    C. 3
    D. 4
    15. What can be concluded from the demand curve for the product shown in the diagram?

    Demand
    Price

    0 20 40
    Quantity demanded

    A. Change in price will not affect the demand


    B. Producers are unable to respond to a price rise.
    C. The product is one with many substitutes.
    D. There is 20 people able to buy the product.

    5
    16. A mobile (cell) phone operator increases the price of making calls on its network. After
    the price increase, the revenue of the mobile phone operator falls by 10%.
    What is the price elasticity of demand (PED) for the mobile operator’s service?
    A elastic B inelastic C perfectly elastic D unit
    elastic

    17. A product has a price elasticity of demand of – 0.5. What happens to the demand for a
    product if its price falls from $1 to $0.80?
    A It decreases by 10%.
    B It decreases by 20%.
    C It increases by 10%.
    D It increases by 20%.

    18. The demand for gas in a country becomes price-inelastic. What will happen as a result?
    A. Gas workers will be less likely to be successful in obtaining wage increases.
    B Gas workers will be more likely to be successful in obtaining wage increases.
    C Total expenditure on gas by consumers will fall when its price rises.
    D Total expenditure on gas by consumers will rise when its price falls.

    19. The price elasticity of supply is 2. When the price of a commodity increased from $ 20 to
    $ 25, how much is the quantity supplied in the market?
    A. 20%
    B. 25%
    C. 30%
    D. 50%

    20. The table shows the demand and supply for spices in a market in Africa.
    Price per kg in % Quantity demanded (Kg) Quantity supplied (kg)
    10 50 10
    20 40 20
    30 30 30
    40 20 40

    When the price rises from US$20 to US$30 per kg, what is the price elasticity of demand
    (PED) for spices?
    A 0.25 B 0.5 C 1.0 D 2.0

    6
    Part B

    Structured Questions

    1. What is unitary elastic supply? (2)


    2. Explain two reasons why demand for a product may be price-inelastic. (4)
    3. Explain two reasons why manufactured goods are usually in more price-elastic supply
    than agricultural goods. (4)
    4. Explain the difference between inelastic supply and perfectly inelastic supply. (4)
    5. Analyze how an increase in the price elasticity of demand (PED) and the price elasticity
    of supply (PES) of its products could benefit a firm. (6)
    Or
    6. Explain the importance of price elasticity of demand for a government.(6)

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