If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is

Related MCQs

• The law of demand states that an increase in the price of a good:
• The law of supply states that an increase in the price of a good:
• Which of the following would cause a demand curve for a good to be price inelastic?
• If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is:
• The price elasticity of demand is defined as
• A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 40 units and Y is 16 units. The unit price of X is Rs.5. The price of Y is:
• An inferior good is one for which an increase in income causes a(n)
• If the income elasticity of demand for a good is negative, it must be:
• According to ----------- when income increases by a small increment, it leads to increasing marginal utility of income
• A firm may decide to increase its scale so that it has excess production capacity because, by doing so, it is able to