If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

Related MCQs

• If the quantity demanded remains unchanged as the price of the commodity falls, the coefficient of price elasticity of demand is
• As a result of a fall in the price total expenditure on the commodity decreases, the coefficient of elasticity will be:
• If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be:
• A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity:
• An increase in the price of the commodity when demand is inelastic causes the total expenditure of consumers of the commodity to:
• A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased:
• If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is
• Other things remaining the same, the quantity of a product demanded increases with ----- in price.
• If a small change in price leads to infinitely large change in quantity demanded, then the demand is:
• Relation between price of a commodity and demand for another commodity is measured by: