Elasticity of Demand & Supply – types, percentage method, influencing factors Quiz - ICSE Class 10 Economics

Free practice quiz: Elasticity of Demand & Supply – types, percentage method, influencing factors (ICSE Class 10 Economics). 35 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

Sample questions

1. When the percentage change in quantity demanded is exactly equal to the percentage change in price, the elasticity of demand is:

   1. Perfectly elastic
   2. Perfectly inelastic
   3. Unit elastic
   4. Relatively elastic
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   Answer: C. Unit elastic

   Unit elasticity occurs when the percentage change in quantity demanded is equal to the percentage change in price, resulting in an elasticity coefficient of 1.

2. If a 10% increase in the price of good A leads to a 5% decrease in the quantity demanded of good B, then goods A and B are:

   1. Complements
   2. Substitutes
   3. Independent
   4. Inferior goods
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   Answer: A. Complements

   When the price of one good (A) increases and the demand for another good (B) decreases, it indicates that the goods are used together (complements). A classic example is the relationship between printers and ink cartridges.

3. If the income elasticity of demand for a good is negative, the good is likely a(n):

   1. Normal good
   2. Inferior good
   3. Luxury good
   4. Complementary good
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   Answer: B. Inferior good

   A negative income elasticity of demand means that as income rises, the demand for the good falls. These are characteristic of inferior goods, which consumers tend to switch away from as their income increases.

4. The supply of concert tickets for a sold-out show on a particular night is likely to be:

   1. Elastic
   2. Inelastic
   3. Unit elastic
   4. Perfectly elastic
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   Answer: B. Inelastic

   Once the venue capacity is reached, the quantity of tickets available is fixed for that specific event. The supply of tickets for that particular show is therefore inelastic, as it cannot be increased regardless of price.

5. Which of the following is most likely to have perfectly inelastic supply?

   1. A manufactured good with ample spare capacity
   2. Agricultural products
   3. A unique piece of art by a deceased artist
   4. A commodity with many close substitutes
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   Answer: C. A unique piece of art by a deceased artist

   The supply of a unique item, especially one that cannot be reproduced (like art by a deceased artist), is fixed regardless of price. This is the definition of perfectly inelastic supply.

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