Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Elasticity of Demand — Practice Worksheet
Name: ____________________
Roll No.: __________
Date: ____________
General Instructions
- All questions are compulsory.
- Choose the correct option (A, B, C or D) for each question.
- The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each)
15 × 1 = 15 marks
1.
Price elasticity of demand measures the responsiveness of quantity demanded to a change in:
- A.Income
- B.Price
- C.Supply
- D.Population
2.
The elasticity formula is % change in quantity ÷ % change in:
- A.Income
- B.Price
- C.Cost
- D.Population
3.
If E > 1, demand is:
- A.Inelastic
- B.Elastic
- C.Unit elastic
- D.Perfectly inelastic
4.
If E < 1, demand is:
- A.Elastic
- B.Inelastic
- C.Unit elastic
- D.Perfectly elastic
5.
If E = 1, demand is:
- A.Unit elastic
- B.Inelastic
- C.Perfectly elastic
- D.Perfectly inelastic
6.
A horizontal demand curve shows demand that is:
- A.Perfectly elastic
- B.Perfectly inelastic
- C.Unit elastic
- D.Inelastic
7.
A vertical demand curve shows demand that is:
- A.Perfectly elastic
- B.Perfectly inelastic
- C.Elastic
- D.Unit elastic
8.
If a 20% fall in price raises quantity by 40%, the elasticity is:
- A.0.5
- B.2
- C.1
- D.20
9.
The percentage method uses the ____ price and quantity.
- A.Original
- B.Final
- C.Average
- D.Future
10.
Total expenditure equals:
- A.Price × Quantity
- B.Price ÷ Quantity
- C.Price + Quantity
- D.Quantity − Price
11.
If a fall in price raises total expenditure, demand is:
- A.Elastic
- B.Inelastic
- C.Unit elastic
- D.Zero
12.
If total expenditure stays the same when price changes, demand is:
- A.Elastic
- B.Unit elastic
- C.Inelastic
- D.Perfectly elastic
13.
More substitutes available for a good make its demand:
- A.More elastic
- B.Less elastic
- C.Unit elastic
- D.Perfectly inelastic
14.
Necessities like salt tend to have demand that is:
- A.Elastic
- B.Inelastic
- C.Perfectly elastic
- D.Unit elastic
15.
Over a longer time period, demand usually becomes:
- A.More elastic
- B.Less elastic
- C.Perfectly inelastic
- D.Unchanged
Section B — Challenge / Olympiad (2 marks each)
10 × 2 = 20 marks
16.
Price of a good falls from ₹50 to ₹40 and quantity demanded rises from 100 to 150. The elasticity is:
- A.2.5
- B.0.4
- C.1
- D.5
17.
A shopkeeper finds that cutting the price of a luxury watch raises his total sales revenue. The watch's demand is:
- A.Elastic
- B.Inelastic
- C.Unit elastic
- D.Perfectly inelastic
18.
When the price of life-saving medicine rises, patients buy almost the same amount. Its demand is:
- A.Inelastic
- B.Elastic
- C.Perfectly elastic
- D.Unit elastic
19.
A 10% rise in price leaves a farmer's total spending on diesel almost unchanged. Diesel demand is closest to:
- A.Unit elastic
- B.Perfectly elastic
- C.Perfectly inelastic
- D.Highly elastic
20.
Demand for a particular brand of soap is more elastic than demand for soap in general mainly because the brand has:
- A.Many close substitutes (other brands)
- B.No substitutes
- C.A vertical curve
- D.No price
21.
A good on which a household spends a very large share of its income tends to have demand that is:
- A.More elastic
- B.Perfectly inelastic
- C.Always unit elastic
- D.Unaffected by price
22.
Ignoring the negative sign of elasticity is acceptable because economists focus on the:
- A.Size (degree) of responsiveness
- B.Direction only
- C.Total revenue only
- D.Income
23.
If a 30% price cut causes only a 6% rise in quantity demanded, the demand is:
- A.Inelastic (E = 0.2)
- B.Elastic (E = 5)
- C.Unit elastic
- D.Perfectly elastic
24.
Why is demand usually more elastic in the long run than in the short run?
- A.Given time, consumers find and switch to substitutes
- B.Prices never change
- C.Income falls
- D.Goods disappear
25.
A monopolist deciding whether a price cut will raise revenue is really asking whether demand is:
- A.Elastic (so total expenditure rises when price falls)
- B.Perfectly inelastic
- C.Vertical
- D.Zero
Answer Key
Section A — Multiple Choice (1 mark each)
- (B) Price
- (B) Price
- (B) Elastic
- (B) Inelastic
- (A) Unit elastic
- (A) Perfectly elastic
- (B) Perfectly inelastic
- (B) 2
- (A) Original
- (A) Price × Quantity
- (A) Elastic
- (B) Unit elastic
- (A) More elastic
- (B) Inelastic
- (A) More elastic
Section B — Challenge / Olympiad (2 marks each)
- (A) 2.5
- (A) Elastic
- (A) Inelastic
- (A) Unit elastic
- (A) Many close substitutes (other brands)
- (A) More elastic
- (A) Size (degree) of responsiveness
- (A) Inelastic (E = 0.2)
- (A) Given time, consumers find and switch to substitutes
- (A) Elastic (so total expenditure rises when price falls)
Generated by Vidaara.org · Assignment VID-M11-WS · vidaara.org