300 MCQs on Demand and Elasticity of Demand | Complete Advanced Set with Applications & Case Studies

Demand and Elasticity of Demand 

Explore 300 expertly crafted MCQs covering every aspect of Demand and Elasticity—from core concepts to advanced applications, global comparisons, and case studies.

Q1. Which of the following best defines demand?  

✅ A) Quantity of a good consumers are willing and able to buy at a given price  

B) Quantity producers are willing to sell  

C) Quantity government fixes for consumption  

D) Quantity imported from abroad  

Explanation: Demand refers to willingness and ability to buy at a given price.

Q2. Which of the following is the Law of Demand?  

✅ A) Demand decreases when price increases, ceteris paribus  

B) Demand increases when price increases  

C) Demand is independent of price  

D) Demand always remains constant  

Explanation: Law of Demand states an inverse relationship between price and quantity demanded.

Q3. Which of the following is an assumption of the Law of Demand?  

✅ A) Consumer income remains constant  

B) Consumer income changes frequently  

C) Prices of substitutes change  

D) Tastes and preferences change  

Explanation: Law of Demand assumes other factors remain constant (ceteris paribus).

Q4. Which of the following is an exception to the Law of Demand?  

✅ A) Giffen goods  

B) Normal goods  

C) Inferior goods  

D) Luxury goods  

Explanation: Giffen goods show a positive relationship between price and demand.

Q5. Which of the following is a determinant of demand?  

✅ A) Price of the good  

B) Weather conditions only  

C) Government policy only  

D) None of the above  

Explanation: Price is a primary determinant of demand.

Q6. Which of the following shifts the demand curve?  

✅ A) Change in consumer income  

B) Change in price of the good itself  

C) Change in supply  

D) None of the above  

Explanation: Income changes shift the demand curve.

Q7. Which of the following causes movement along the demand curve?  

✅ A) Change in price of the good itself  

B) Change in consumer income  

C) Change in tastes  

D) Change in population  

Explanation: Price changes cause movement along the demand curve.

Q8. Which of the following is individual demand?  

✅ A) Demand of a single consumer for a good  

B) Demand of all consumers combined  

C) Demand of producers  

D) Demand of government  

Explanation: Individual demand refers to demand of a single consumer.

Q9. Which of the following is market demand?  

✅ A) Sum of individual demands for a good  

B) Demand of a single consumer  

C) Demand of producers  

D) Demand of government  

Explanation: Market demand is the aggregate of individual demands.

Q10. Which of the following is a factor affecting demand for luxury goods?  

✅ A) Consumer income  

B) Price only  

C) Supply only  

D) None of the above  

Explanation: Luxury goods demand depends heavily on consumer income.

Q11. Which of the following is a factor affecting demand for inferior goods?  

✅ A) Consumer income (inverse relationship)  

B) Price only  

C) Supply only  

D) None of the above  

Explanation: Inferior goods demand decreases as income increases.

Q12. Which of the following is a complementary good?  

✅ A) Tea and sugar  

B) Tea and coffee  

C) Rice and wheat  

D) None of the above  

Explanation: Complementary goods are consumed together, like tea and sugar.

Q13. Which of the following is a substitute good?  

✅ A) Tea and coffee  

B) Tea and sugar  

C) Rice and dal  

D) None of the above  

Explanation: Substitute goods can replace each other, like tea and coffee.

Q14. Which of the following is true about demand curve slope?  

✅ A) Slopes downward from left to right  

B) Slopes upward from left to right  

C) Always horizontal  

D) Always vertical  

Explanation: Demand curve slopes downward due to inverse relation between price and demand.

Q15. Which of the following is true about demand schedule?  

✅ A) Table showing price and quantity demanded  

B) Graph showing supply  

C) Table showing production  

D) Table showing imports  

Explanation: Demand schedule shows price and quantity demanded.

Q16. Which of the following is true about market demand curve?  

✅ A) Horizontal summation of individual demand curves  

B) Vertical summation of individual demand curves  

C) Diagonal summation  

D) None of the above  

Explanation: Market demand curve is obtained by horizontal summation.

Q17. Which of the following is true about elasticity in demand basics?  

✅ A) Measures responsiveness of demand to price changes  

B) Measures supply only  

C) Measures production only  

D) Measures imports only  

Explanation: Elasticity measures responsiveness of demand to price changes.

Q18. Which of the following is true about demand for necessities?  

✅ A) Relatively inelastic  

B) Perfectly elastic  

C) Perfectly inelastic  

D) Highly elastic  

Explanation: Necessities have relatively inelastic demand.

Q19. Which of the following is true about demand for luxuries?  

✅ A) Relatively elastic  

B) Perfectly inelastic  

C) Relatively inelastic  

D) None of the above  

Explanation: Luxuries have relatively elastic demand.

Q20. Which of the following is true about demand for addictive goods?  

✅ A) Relatively inelastic  

B) Perfectly elastic  

C) Relatively elastic  

D) None of the above  

Explanation: Addictive goods have relatively inelastic demand.

Q21. Which of the following is true about demand curve exceptions?  

✅ A) Giffen goods show upward sloping demand curve  

B) Normal goods show upward sloping demand curve  

C) Inferior goods show upward sloping demand curve  

D) None of the above  

Explanation: Giffen goods are exceptions with upward sloping demand curve.

Q22. Which of the following is true about demand for public goods?  

✅ A) Not determined by individual willingness to pay  

B) Determined by individual demand only  

C) Determined by supply only  

D) None of the above  

Explanation: Public goods demand is collective, not individual.

Q23. Which of the following is true about demand forecasting?  

✅ A) Predicting future demand based on data  

B) Measuring current supply  

C) Measuring imports  

D) Measuring exports  

Explanation: Demand forecasting predicts future demand.

Q24. Which of the following is true about demand in global markets?  

✅ A) Influenced by exchange rates and global income  

B) Influenced only by local supply  

C) Influenced only by local tastes  

D) None of the above  

Explanation: Global demand is influenced by exchange rates and global income.

Q25. Which of the following is true about demand curve representation?  

✅ A) Graph showing inverse relation between price and quantity demanded  

B) Graph showing supply  

C) Graph showing imports  

D) Graph showing exports  

Explanation: Demand curve represents inverse relation between price and quantity demanded.

Q26. Which of the following is a key determinant of demand?  

✅ A) Consumer income  

B) Producer supply only  

C) Government expenditure only  

D) None of the above  

Explanation: Consumer income strongly influences demand.

Q27. Which of the following is true about demand for normal goods?  

✅ A) Demand increases with rise in income  

B) Demand decreases with rise in income  

C) Demand remains constant  

D) Demand is independent of income  

Explanation: Normal goods have positive income elasticity.

Q28. Which of the following is true about demand for inferior goods?  

✅ A) Demand decreases when income rises  

B) Demand increases when income rises  

C) Demand remains constant  

D) Demand is independent of income  

Explanation: Inferior goods demand falls as income rises.

Q29. Which of the following is a determinant of demand for luxury goods?  

✅ A) Consumer income  

B) Supply only  

C) Imports only  

D) None of the above  

Explanation: Luxury goods demand depends heavily on income.

Q30. Which of the following is a determinant of demand for complementary goods?  

✅ A) Price of related goods  

B) Supply only  

C) Imports only  

D) None of the above  

Explanation: Complementary goods demand depends on price of related goods.

Q31. Which of the following is a determinant of demand for substitute goods?  

✅ A) Price of substitutes  

B) Supply only  

C) Imports only  

D) None of the above  

Explanation: Substitute goods demand depends on price of substitutes.

Q32. Which of the following is a determinant of demand for addictive goods?  

✅ A) Consumer habits  

B) Supply only  

C) Imports only  

D) None of the above  

Explanation: Addictive goods demand depends on consumer habits.

Q33. Which of the following is a determinant of demand for agricultural goods?  

✅ A) Weather conditions  

B) Supply only  

C) Imports only  

D) None of the above  

Explanation: Weather conditions strongly affect agricultural demand.

Q34. Which of the following is a determinant of demand for industrial goods?  

✅ A) Price and technology  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Industrial goods demand depends on price and technology.

Q35. Which of the following is a determinant of demand for services?  

✅ A) Consumer income and preferences  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Services demand depends on income and preferences.

Q36. Which of the following is a determinant of demand for public goods?  

✅ A) Government policy  

B) Consumer income only  

C) Imports only  

D) None of the above  

Explanation: Public goods demand is determined by government policy.

Q37. Which of the following is a determinant of demand for healthcare?  

✅ A) Consumer income and health needs  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Healthcare demand depends on income and health needs.

Q38. Which of the following is a determinant of demand for education?  

✅ A) Consumer income and social preferences  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Education demand depends on income and social preferences.

Q39. Which of the following is a determinant of demand for housing?  

✅ A) Consumer income and interest rates  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Housing demand depends on income and interest rates.

Q40. Which of the following is a determinant of demand for transport?  

✅ A) Consumer income and urbanization  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Transport demand depends on income and urbanization.

Q41. Which of the following is a determinant of demand for food?  

✅ A) Consumer income and tastes  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Food demand depends on income and tastes.

Q42. Which of the following is a determinant of demand for clothing?  

✅ A) Consumer income and fashion trends  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Clothing demand depends on income and fashion trends.

Q43. Which of the following is a determinant of demand for technology goods?  

✅ A) Consumer income and innovation  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Technology demand depends on income and innovation.

Q44. Which of the following is a determinant of demand for entertainment?  

✅ A) Consumer income and preferences  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Entertainment demand depends on income and preferences.

Q45. Which of the following is a determinant of demand for tourism?  

✅ A) Consumer income and global conditions  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Tourism demand depends on income and global conditions.

Q46. Which of the following is a determinant of demand for FMCG goods?  

✅ A) Consumer income and advertising  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: FMCG demand depends on income and advertising.

Q47. Which of the following is a determinant of demand for luxury cars?  

✅ A) Consumer income and status preferences  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Luxury car demand depends on income and status preferences.

Q48. Which of the following is a determinant of demand for smartphones?  

✅ A) Consumer income and technology trends  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Smartphone demand depends on income and technology trends.

Q49. Which of the following is a determinant of demand for global commodities?  

✅ A) Exchange rates and global income  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Global commodity demand depends on exchange rates and global income.

Q50. Which of the following is a determinant of demand for energy?  

✅ A) Consumer income and industrial growth  

B) Weather only  

C) Imports only  

D) None of the above  

Explanation: Energy demand depends on income and industrial growth.

Q51. Which of the following best defines price elasticity of demand?  

✅ A) Responsiveness of quantity demanded to changes in price  

B) Responsiveness of supply to changes in price  

C) Responsiveness of imports to changes in tariffs  

D) Responsiveness of production to changes in wages  

Explanation: Price elasticity measures responsiveness of demand to price changes.

Q52. Which of the following is true about perfectly elastic demand?  

✅ A) Demand is infinite at a given price  

B) Demand is zero at all prices  

C) Demand is constant regardless of price  

D) Demand is independent of price  

Explanation: Perfectly elastic demand means consumers buy infinite quantity at one price.

Q53. Which of the following is true about perfectly inelastic demand?  

✅ A) Demand remains constant despite price changes  

B) Demand is infinite at a given price  

C) Demand is zero at all prices  

D) Demand is independent of income  

Explanation: Perfectly inelastic demand means demand does not change with price.

Q54. Which of the following is true about unitary elastic demand?  

✅ A) Percentage change in demand equals percentage change in price  

B) Demand is infinite at a given price  

C) Demand is constant regardless of price  

D) Demand is independent of income  

Explanation: Unitary elasticity means demand changes proportionally with price.

Q55. Which of the following is true about relatively elastic demand?  

✅ A) Small change in price causes large change in demand  

B) Large change in price causes small change in demand  

C) Demand is constant regardless of price  

D) Demand is independent of income  

Explanation: Relatively elastic demand means demand is highly responsive to price.

Q56. Which of the following is true about relatively inelastic demand?  

✅ A) Large change in price causes small change in demand  

B) Small change in price causes large change in demand  

C) Demand is constant regardless of price  

D) Demand is independent of income  

Explanation: Relatively inelastic demand means demand is less responsive to price.

Q57. Which of the following is true about elasticity greater than 1?  

✅ A) Demand is elastic  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Elasticity greater than 1 indicates elastic demand.

Q58. Which of the following is true about elasticity less than 1?  

✅ A) Demand is inelastic  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly elastic  

Explanation: Elasticity less than 1 indicates inelastic demand.

Q59. Which of the following is true about elasticity equal to 1?  

✅ A) Demand is unitary elastic  

B) Demand is perfectly elastic  

C) Demand is perfectly inelastic  

D) Demand is relatively inelastic  

Explanation: Elasticity equal to 1 indicates unitary elasticity.

Q60. Which of the following is true about elasticity of demand for necessities?  

✅ A) Relatively inelastic  

B) Perfectly elastic  

C) Perfectly inelastic  

D) Highly elastic  

Explanation: Necessities have relatively inelastic demand.

Q61. Which of the following is true about elasticity of demand for luxuries?  

✅ A) Relatively elastic  

B) Perfectly inelastic  

C) Relatively inelastic  

D) None of the above  

Explanation: Luxuries have relatively elastic demand.

Q62. Which of the following is true about elasticity of demand for addictive goods?  

✅ A) Relatively inelastic  

B) Perfectly elastic  

C) Relatively elastic  

D) None of the above  

Explanation: Addictive goods have relatively inelastic demand.

Q63. Which of the following is true about elasticity of demand for durable goods?  

✅ A) Relatively elastic  

B) Perfectly inelastic  

C) Relatively inelastic  

D) None of the above  

Explanation: Durable goods demand is relatively elastic.

Q64. Which of the following is true about elasticity of demand for perishable goods?  

✅ A) Relatively inelastic  

B) Perfectly elastic  

C) Relatively elastic  

D) None of the above  

Explanation: Perishable goods demand is relatively inelastic.

Q65. Which of the following is true about elasticity of demand for public goods?  

✅ A) Not determined by individual willingness to pay  

B) Determined by individual demand only  

C) Determined by supply only  

D) None of the above  

Explanation: Public goods demand is collective, not individual.

Q66. Which of the following is true about elasticity of demand in monopolies?  

✅ A) Demand is relatively inelastic  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Monopoly demand is relatively inelastic.

Q67. Which of the following is true about elasticity of demand in competitive markets?  

✅ A) Demand is relatively elastic  

B) Demand is perfectly inelastic  

C) Demand is unitary  

D) Demand is perfectly elastic  

Explanation: Competitive markets have relatively elastic demand.

Q68. Which of the following is true about elasticity of demand in oligopolies?  

✅ A) Demand varies depending on collusion and competition  

B) Demand is perfectly elastic  

C) Demand is perfectly inelastic  

D) Demand is unitary  

Explanation: Oligopoly demand varies with market behavior.

Q69. Which of the following is true about elasticity of demand in agriculture?  

✅ A) Relatively inelastic due to necessity  

B) Relatively elastic  

C) Perfectly elastic  

D) Perfectly inelastic  

Explanation: Agricultural goods demand is relatively inelastic.

Q70. Which of the following is true about elasticity of demand in technology goods?  

✅ A) Relatively elastic due to innovation  

B) Relatively inelastic  

C) Perfectly elastic  

D) Perfectly inelastic  

Explanation: Technology goods demand is relatively elastic.

Q71. Which of the following is true about elasticity of demand in FMCG goods?  

✅ A) Relatively inelastic due to necessity  

B) Relatively elastic  

C) Perfectly elastic  

D) Perfectly inelastic  

Explanation: FMCG goods demand is relatively inelastic.

Q72. Which of the following is true about elasticity of demand in luxury cars?  

✅ A) Relatively elastic due to high income sensitivity  

B) Relatively inelastic  

C) Perfectly elastic  

D) Perfectly inelastic  

Explanation: Luxury car demand is relatively elastic.

Q73. Which of the following is true about elasticity of demand in airline tickets?  

✅ A) Relatively elastic for leisure travel  

B) Relatively inelastic for leisure travel  

C) Perfectly elastic  

D) Perfectly inelastic  

Explanation: Airline ticket demand is elastic for leisure travel.

Q74. Which of the following is true about elasticity of demand in oil?  

✅ A) Relatively inelastic due to necessity  

B) Relatively elastic  

C) Perfectly elastic  

D) Perfectly inelastic  

Explanation: Oil demand is relatively inelastic.

Q75. Which of the following is true about elasticity of demand in global commodities?  

✅ A) Varies depending on substitutes and global conditions  

B) Always perfectly elastic  

C) Always perfectly inelastic  

D) Always unitary  

Explanation: Global commodity demand elasticity varies with substitutes and conditions.

Q76. Which of the following is a method of measuring price elasticity of demand?  

✅ A) Percentage method  

B) Supply method  

C) Import method  

D) Export method  

Explanation: Percentage method calculates elasticity using percentage changes in price and demand.

Q77. Which of the following is true about the percentage method?  

✅ A) Elasticity = (% change in demand) / (% change in price)  

B) Elasticity = (% change in price) / (% change in demand)  

C) Elasticity = demand × price  

D) Elasticity = supply ÷ demand  

Explanation: Percentage method uses ratio of percentage changes.

Q78. Which of the following is true about the total outlay method?  

✅ A) Elasticity is judged by changes in total expenditure on a good  

B) Elasticity is judged by changes in supply  

C) Elasticity is judged by changes in imports  

D) Elasticity is judged by changes in exports  

Explanation: Total outlay method measures elasticity by expenditure changes.

Q79. Which of the following is true about arc elasticity?  

✅ A) Measures elasticity between two points on demand curve  

B) Measures elasticity at one point only  

C) Measures elasticity of supply  

D) Measures elasticity of imports  

Explanation: Arc elasticity measures elasticity between two points.

Q80. Which of the following is true about point elasticity?  

✅ A) Measures elasticity at a specific point on demand curve  

B) Measures elasticity between two points  

C) Measures elasticity of supply  

D) Measures elasticity of imports  

Explanation: Point elasticity measures elasticity at a specific point.

Q81. Which of the following is true about elasticity in total outlay method when expenditure increases with price?  

✅ A) Demand is inelastic  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly elastic  

Explanation: If expenditure rises with price, demand is inelastic.

Q82. Which of the following is true about elasticity in total outlay method when expenditure decreases with price?  

✅ A) Demand is elastic  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: If expenditure falls with price, demand is elastic.

Q83. Which of the following is true about elasticity in total outlay method when expenditure remains constant?  

✅ A) Demand is unitary elastic  

B) Demand is perfectly elastic  

C) Demand is perfectly inelastic  

D) Demand is relatively inelastic  

Explanation: Constant expenditure indicates unitary elasticity.

Q84. Which of the following is true about elasticity using geometric method?  

✅ A) Elasticity is measured by slope of demand curve segments  

B) Elasticity is measured by supply curve slope  

C) Elasticity is measured by imports  

D) Elasticity is measured by exports  

Explanation: Geometric method uses slope of demand curve.

Q85. Which of the following is true about elasticity using expenditure method?  

✅ A) Elasticity is measured by changes in consumer spending  

B) Elasticity is measured by changes in supply  

C) Elasticity is measured by imports  

D) Elasticity is measured by exports  

Explanation: Expenditure method measures elasticity by consumer spending.

Q86. Which of the following is true about elasticity using revenue method?  

✅ A) Elasticity is measured by changes in total revenue  

B) Elasticity is measured by changes in supply  

C) Elasticity is measured by imports  

D) Elasticity is measured by exports  

Explanation: Revenue method measures elasticity by total revenue changes.

Q87. Which of the following is true about elasticity using slope method?  

✅ A) Elasticity is inversely related to slope of demand curve  

B) Elasticity is directly related to slope  

C) Elasticity is independent of slope  

D) Elasticity is equal to slope  

Explanation: Elasticity is inversely related to slope of demand curve.

Q88. Which of the following is true about elasticity in linear demand curve?  

✅ A) Elasticity varies along the curve  

B) Elasticity remains constant  

C) Elasticity is infinite everywhere  

D) Elasticity is zero everywhere  

Explanation: Elasticity varies along a linear demand curve.

Q89. Which of the following is true about elasticity at midpoint of linear demand curve?  

✅ A) Elasticity is unitary  

B) Elasticity is perfectly elastic  

C) Elasticity is perfectly inelastic  

D) Elasticity is infinite  

Explanation: At midpoint, elasticity is unitary.

Q90. Which of the following is true about elasticity at upper portion of linear demand curve?  

✅ A) Elasticity is greater than 1 (elastic)  

B) Elasticity is less than 1 (inelastic)  

C) Elasticity is equal to 1  

D) Elasticity is zero  

Explanation: Upper portion of linear demand curve is elastic.

Q91. Which of the following is true about elasticity at lower portion of linear demand curve?  

✅ A) Elasticity is less than 1 (inelastic)  

B) Elasticity is greater than 1 (elastic)  

C) Elasticity is equal to 1  

D) Elasticity is infinite  

Explanation: Lower portion of linear demand curve is inelastic.

Q92. Which of the following is true about elasticity in perfectly elastic demand curve?  

✅ A) Elasticity is infinite  

B) Elasticity is zero  

C) Elasticity is unitary  

D) Elasticity is constant  

Explanation: Perfectly elastic demand curve has infinite elasticity.

Q93. Which of the following is true about elasticity in perfectly inelastic demand curve?  

✅ A) Elasticity is zero  

B) Elasticity is infinite  

C) Elasticity is unitary  

D) Elasticity is constant  

Explanation: Perfectly inelastic demand curve has zero elasticity.

Q94. Which of the following is true about elasticity in unitary elastic demand curve?  

✅ A) Elasticity is equal to 1 everywhere  

B) Elasticity is infinite everywhere  

C) Elasticity is zero everywhere  

D) Elasticity is constant at 0  

Explanation: Unitary elastic demand curve has elasticity equal to 1.

Q95. Which of the following is true about elasticity in rectangular hyperbola demand curve?  

✅ A) Elasticity is unitary at all points  

B) Elasticity is infinite at all points  

C) Elasticity is zero at all points  

D) Elasticity is constant at 0  

Explanation: Rectangular hyperbola demand curve has unitary elasticity.

Q96. Which of the following is true about elasticity in numerical problems?  

✅ A) Elasticity can be calculated using demand schedules  

B) Elasticity cannot be calculated  

C) Elasticity is always infinite  

D) Elasticity is always zero  

Explanation: Elasticity can be calculated using demand schedules.

Q97. Which of the following is true about elasticity in arc method?  

✅ A) Uses average of two prices and quantities  

B) Uses only one price and quantity  

C) Uses slope only  

D) Uses imports  

Explanation: Arc method uses average of two prices and quantities.

Q98. Which of the following is true about elasticity in point method?  

✅ A) Uses derivative of demand function at a point  

B) Uses average of two points  

C) Uses slope only  

D) Uses imports  

Explanation: Point method uses derivative of demand function.

Q99. Which of the following is true about elasticity in expenditure method when price rises but demand falls proportionally?  

✅ A) Expenditure remains constant → unitary elasticity  

B) Expenditure increases → inelastic demand  

C) Expenditure decreases → elastic demand  

D) Expenditure is infinite  

Explanation: Proportional changes keep expenditure constant, showing unitary elasticity.

Q100. Which of the following is true about elasticity in practical applications?  

✅ A) Different methods are used depending on data availability  

B) Only one method is universally applicable  

C) Elasticity cannot be measured  

D) Elasticity is irrelevant  

Explanation: Different methods are used depending on data availability.

Q101. Which of the following is an application of price elasticity in taxation?  

✅ A) Governments impose higher taxes on inelastic goods  

B) Governments impose higher taxes on elastic goods  

C) Governments impose equal taxes on all goods  

D) Governments avoid taxing inelastic goods  

Explanation: Inelastic goods are taxed more because demand doesn’t fall much.

Q102. Which of the following is true about elasticity in subsidy policy?  

✅ A) Subsidies are more effective on elastic goods  

B) Subsidies are more effective on inelastic goods  

C) Subsidies have no effect on demand  

D) Subsidies reduce demand  

Explanation: Elastic goods respond strongly to subsidies.

Q103. Which of the following is true about elasticity in monopoly pricing?  

✅ A) Monopolists set higher prices when demand is inelastic  

B) Monopolists set lower prices when demand is inelastic  

C) Monopolists ignore elasticity  

D) Monopolists always set unitary prices  

Explanation: Monopolists exploit inelastic demand by charging higher prices.

Q104. Which of the following is true about elasticity in competitive markets?  

✅ A) Firms lower prices when demand is elastic to increase revenue  

B) Firms raise prices when demand is elastic  

C) Firms ignore elasticity  

D) Firms always set constant prices  

Explanation: Elastic demand encourages firms to lower prices.

Q105. Which of the following is true about elasticity in oligopoly markets?  

✅ A) Firms consider rivals’ reactions when demand is elastic  

B) Firms ignore rivals’ reactions  

C) Firms always set constant prices  

D) Firms never consider elasticity  

Explanation: Oligopolists consider rivals’ reactions in pricing decisions.

Q106. Which of the following is true about elasticity in agricultural goods?  

✅ A) Prices fluctuate widely due to inelastic demand  

B) Prices remain constant  

C) Demand is perfectly elastic  

D) Demand is perfectly inelastic  

Explanation: Agricultural goods have inelastic demand, causing price fluctuations.

Q107. Which of the following is true about elasticity in oil demand?  

✅ A) Oil demand is relatively inelastic due to necessity  

B) Oil demand is perfectly elastic  

C) Oil demand is unitary  

D) Oil demand is perfectly inelastic  

Explanation: Oil demand is relatively inelastic.

Q108. Which of the following is true about elasticity in airline tickets?  

✅ A) Leisure travel demand is elastic, business travel demand is inelastic  

B) Both leisure and business travel are elastic  

C) Both leisure and business travel are inelastic  

D) Airline demand is independent of price  

Explanation: Leisure travel is elastic, business travel is inelastic.

Q109. Which of the following is true about elasticity in FMCG goods?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: FMCG goods demand is relatively inelastic.

Q110. Which of the following is true about elasticity in luxury goods?  

✅ A) Demand is highly elastic due to income sensitivity  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury goods demand is highly elastic.

Q111. Which of the following is true about elasticity in technology goods?  

✅ A) Demand is elastic due to innovation and substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Technology goods demand is elastic.

Q112. Which of the following is true about elasticity in housing demand?  

✅ A) Demand is elastic due to interest rate changes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Housing demand is elastic, influenced by interest rates.

Q113. Which of the following is true about elasticity in healthcare demand?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Healthcare demand is relatively inelastic.

Q114. Which of the following is true about elasticity in education demand?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Education demand is relatively inelastic.

Q115. Which of the following is true about elasticity in entertainment demand?  

✅ A) Demand is elastic due to discretionary spending  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Entertainment demand is elastic.

Q116. Which of the following is true about elasticity in tourism demand?  

✅ A) Demand is elastic due to income and global conditions  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Tourism demand is elastic.

Q117. Which of the following is true about elasticity in food demand?  

✅ A) Staple food demand is inelastic, luxury food demand is elastic  

B) All food demand is elastic  

C) All food demand is inelastic  

D) Food demand is independent of price  

Explanation: Staple foods are inelastic, luxury foods are elastic.

Q118. Which of the following is true about elasticity in clothing demand?  

✅ A) Basic clothing demand is inelastic, fashion clothing demand is elastic  

B) All clothing demand is elastic  

C) All clothing demand is inelastic  

D) Clothing demand is independent of price  

Explanation: Basic clothing is inelastic, fashion clothing is elastic.

Q119. Which of the following is true about elasticity in global commodities?  

✅ A) Elasticity varies depending on substitutes and global conditions  

B) Elasticity is always perfectly elastic  

C) Elasticity is always perfectly inelastic  

D) Elasticity is always unitary  

Explanation: Global commodity elasticity varies with substitutes and conditions.

Q120. Which of the following is true about elasticity in taxation of addictive goods?  

✅ A) Governments impose higher taxes due to inelastic demand  

B) Governments impose lower taxes due to elastic demand  

C) Governments avoid taxing addictive goods  

D) Governments impose equal taxes on all goods  

Explanation: Addictive goods are taxed more due to inelastic demand.

Q121. Which of the following is true about elasticity in subsidy of technology goods?  

✅ A) Subsidies increase demand significantly due to elasticity  

B) Subsidies have no effect  

C) Subsidies reduce demand  

D) Subsidies are irrelevant  

Explanation: Technology goods respond strongly to subsidies.

Q122. Which of the following is true about elasticity in monopoly revenue maximization?  

✅ A) Monopolists lower prices when demand is elastic to maximize revenue  

B) Monopolists raise prices when demand is elastic  

C) Monopolists ignore elasticity  

D) Monopolists always set constant prices  

Explanation: Monopolists lower prices when demand is elastic.

Q123. Which of the following is true about elasticity in government welfare policy?  

✅ A) Elasticity helps design subsidies and welfare programs  

B) Elasticity is irrelevant  

C) Elasticity is ignored  

D) Elasticity is constant  

Explanation: Elasticity guides welfare program design.

Q124. Which of the following is true about elasticity in international trade?  

✅ A) Elasticity affects terms of trade and tariff policies  

B) Elasticity is irrelevant in trade  

C) Elasticity is ignored in trade  

D) Elasticity is constant globally  

Explanation: Elasticity influences trade policies.

Q125. Which of the following is true about elasticity in business pricing strategy?  

✅ A) Firms adjust prices based on elasticity to maximize revenue  

B) Firms ignore elasticity  

C) Firms always set constant prices  

D) Firms avoid considering demand  

Explanation: Firms use elasticity to adjust prices strategically.

Q126. Which of the following best defines income elasticity of demand?  

✅ A) Responsiveness of demand to changes in consumer income  

B) Responsiveness of supply to changes in consumer income  

C) Responsiveness of imports to changes in tariffs  

D) Responsiveness of production to changes in wages  

Explanation: Income elasticity measures how demand changes with income.

Q127. Which of the following is true about normal goods?  

✅ A) Demand increases as income rises  

B) Demand decreases as income rises  

C) Demand remains constant  

D) Demand is independent of income  

Explanation: Normal goods have positive income elasticity.

Q128. Which of the following is true about inferior goods?  

✅ A) Demand decreases as income rises  

B) Demand increases as income rises  

C) Demand remains constant  

D) Demand is independent of income  

Explanation: Inferior goods have negative income elasticity.

Q129. Which of the following is true about luxury goods?  

✅ A) Demand increases more than proportionally with income  

B) Demand decreases with income  

C) Demand remains constant  

D) Demand is independent of income  

Explanation: Luxury goods have high positive income elasticity.

Q130. Which of the following is true about necessity goods?  

✅ A) Demand increases less than proportionally with income  

B) Demand increases more than proportionally with income  

C) Demand decreases with income  

D) Demand is independent of income  

Explanation: Necessities have low positive income elasticity.

Q131. Which of the following is true about income elasticity greater than 1?  

✅ A) Demand is highly elastic (luxury goods)  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Elasticity > 1 indicates luxury goods.

Q132. Which of the following is true about income elasticity less than 1 but greater than 0?  

✅ A) Demand is inelastic (necessities)  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Elasticity between 0 and 1 indicates necessities.

Q133. Which of the following is true about income elasticity equal to 0?  

✅ A) Demand is independent of income  

B) Demand increases with income  

C) Demand decreases with income  

D) Demand is unitary  

Explanation: Elasticity = 0 means demand is unaffected by income.

Q134. Which of the following is true about negative income elasticity?  

✅ A) Demand decreases as income rises (inferior goods)  

B) Demand increases with income  

C) Demand remains constant  

D) Demand is unitary  

Explanation: Negative elasticity indicates inferior goods.

Q135. Which of the following is true about Engel’s Law?  

✅ A) Proportion of income spent on food decreases as income rises  

B) Proportion of income spent on food increases as income rises  

C) Proportion of income spent on food remains constant  

D) Proportion of income spent on food is independent of income  

Explanation: Engel’s Law shows declining food expenditure share with rising income.

Q136. Which of the following is true about income elasticity in agriculture?  

✅ A) Staple food demand has low elasticity  

B) Staple food demand has high elasticity  

C) Staple food demand is independent of income  

D) Staple food demand is negative  

Explanation: Staple food demand has low elasticity.

Q137. Which of the following is true about income elasticity in luxury cars?  

✅ A) High positive elasticity  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Luxury cars have high positive income elasticity.

Q138. Which of the following is true about income elasticity in healthcare?  

✅ A) Low positive elasticity due to necessity  

B) High positive elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Healthcare demand has low positive elasticity.

Q139. Which of the following is true about income elasticity in education?  

✅ A) Low positive elasticity due to necessity  

B) High positive elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Education demand has low positive elasticity.

Q140. Which of the following is true about income elasticity in entertainment?  

✅ A) High positive elasticity due to discretionary spending  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Entertainment demand has high positive elasticity.

Q141. Which of the following is true about income elasticity in tourism?  

✅ A) High positive elasticity due to discretionary spending  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Tourism demand has high positive elasticity.

Q142. Which of the following is true about income elasticity in FMCG goods?  

✅ A) Low positive elasticity due to necessity  

B) High positive elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: FMCG goods have low positive elasticity.

Q143. Which of the following is true about income elasticity in technology goods?  

✅ A) High positive elasticity due to innovation and discretionary spending  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Technology goods have high positive elasticity.

Q144. Which of the following is true about income elasticity in housing demand?  

✅ A) Positive elasticity influenced by income and interest rates  

B) Negative elasticity  

C) Zero elasticity  

D) Independent of income  

Explanation: Housing demand has positive elasticity.

Q145. Which of the following is true about income elasticity in global commodities?  

✅ A) Varies depending on income levels and substitutes  

B) Always high elasticity  

C) Always low elasticity  

D) Always negative elasticity  

Explanation: Global commodity elasticity varies with income levels.

Q146. Which of the following is true about income elasticity in addictive goods?  

✅ A) Low elasticity due to necessity-like behavior  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Addictive goods have low elasticity.

Q147. Which of the following is true about income elasticity in inferior goods like coarse grains?  

✅ A) Negative elasticity  

B) Positive elasticity  

C) Zero elasticity  

D) Unitary elasticity  

Explanation: Inferior goods like coarse grains have negative elasticity.

Q148. Which of the following is true about income elasticity in luxury services?  

✅ A) High positive elasticity  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Luxury services have high positive elasticity.

Q149. Which of the following is true about income elasticity in public goods?  

✅ A) Independent of individual income  

B) Dependent on individual income  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Public goods demand is collective, not individual.

Q150. Which of the following is true about income elasticity in global markets?  

✅ A) Elasticity varies across countries depending on income levels  

B) Elasticity is constant everywhere  

C) Elasticity is always high  

D) Elasticity is always low  

Explanation: Income elasticity varies across countries and income levels.

Q151. Which of the following best defines cross elasticity of demand?  

✅ A) Responsiveness of demand for one good to changes in price of another good  

B) Responsiveness of supply to changes in wages  

C) Responsiveness of imports to tariffs  

D) Responsiveness of production to technology  

Explanation: Cross elasticity measures how demand for one good changes when the price of another good changes.

Q152. Which of the following is true about substitutes?  

✅ A) Cross elasticity is positive  

B) Cross elasticity is negative  

C) Cross elasticity is zero  

D) Cross elasticity is unitary  

Explanation: Substitutes have positive cross elasticity.

Q153. Which of the following is true about complements?  

✅ A) Cross elasticity is negative  

B) Cross elasticity is positive  

C) Cross elasticity is zero  

D) Cross elasticity is unitary  

Explanation: Complements have negative cross elasticity.

Q154. Which of the following is true about unrelated goods?  

✅ A) Cross elasticity is zero  

B) Cross elasticity is positive  

C) Cross elasticity is negative  

D) Cross elasticity is unitary  

Explanation: Unrelated goods have zero cross elasticity.

Q155. Which of the following is true about tea and coffee?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Tea and coffee are substitutes.

Q156. Which of the following is true about tea and sugar?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Tea and sugar are complements.

Q157. Which of the following is true about petrol and cars?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Petrol and cars are complements.

Q158. Which of the following is true about butter and margarine?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Butter and margarine are substitutes.

Q159. Which of the following is true about rice and wheat?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Rice and wheat are substitutes.

Q160. Which of the following is true about pen and ink?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Pen and ink are complements.

Q161. Which of the following is true about smartphones and mobile data?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Smartphones and mobile data are complements.

Q162. Which of the following is true about smartphones and laptops?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Smartphones and laptops can act as substitutes.

Q163. Which of the following is true about electricity and electric appliances?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Electricity and appliances are complements.

Q164. Which of the following is true about public transport and private cars?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Public transport and cars are substitutes.

Q165. Which of the following is true about milk and bread?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Milk and bread are complements.

Q166. Which of the following is true about Coke and Pepsi?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Coke and Pepsi are substitutes.

Q167. Which of the following is true about gold and silver?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Gold and silver are substitutes.

Q168. Which of the following is true about shoes and socks?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Shoes and socks are complements.

Q169. Which of the following is true about bread and butter?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Bread and butter are complements.

Q170. Which of the following is true about cars and bicycles?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Cars and bicycles can act as substitutes.

Q171. Which of the following is true about coal and oil?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Coal and oil are substitutes.

Q172. Which of the following is true about petrol and diesel?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Petrol and diesel are substitutes.

Q173. Which of the following is true about books and e‑books?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Books and e‑books are substitutes.

Q174. Which of the following is true about electricity and kerosene?  

✅ A) Positive cross elasticity (substitutes)  

B) Negative cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Electricity and kerosene are substitutes.

Q175. Which of the following is true about bread and jam?  

✅ A) Negative cross elasticity (complements)  

B) Positive cross elasticity  

C) Zero cross elasticity  

D) Unitary cross elasticity  

Explanation: Bread and jam are complements.

Q176. Which of the following best defines advertising elasticity of demand?  

✅ A) Responsiveness of demand to changes in advertising expenditure  

B) Responsiveness of supply to changes in advertising  

C) Responsiveness of imports to tariffs  

D) Responsiveness of production to wages  

Explanation: Advertising elasticity measures how demand changes with advertising.

Q177. Which of the following is true about positive advertising elasticity?  

✅ A) Demand increases with advertising expenditure  

B) Demand decreases with advertising expenditure  

C) Demand remains constant  

D) Demand is independent of advertising  

Explanation: Positive elasticity means demand rises with advertising.

Q178. Which of the following is true about zero advertising elasticity?  

✅ A) Demand is unaffected by advertising  

B) Demand increases with advertising  

C) Demand decreases with advertising  

D) Demand is unitary  

Explanation: Zero elasticity means advertising has no effect.

Q179. Which of the following is true about negative advertising elasticity?  

✅ A) Demand decreases with advertising expenditure  

B) Demand increases with advertising expenditure  

C) Demand remains constant  

D) Demand is unitary  

Explanation: Negative elasticity means advertising reduces demand.

Q180. Which of the following is true about advertising elasticity in FMCG goods?  

✅ A) High positive elasticity due to brand competition  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: FMCG goods respond strongly to advertising.

Q181. Which of the following is true about advertising elasticity in luxury goods?  

✅ A) High positive elasticity due to status appeal  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Luxury goods demand rises with advertising.

Q182. Which of the following is true about advertising elasticity in addictive goods?  

✅ A) Low elasticity due to habit persistence  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Addictive goods demand is less influenced by advertising.

Q183. Which of the following is true about advertising elasticity in technology goods?  

✅ A) High positive elasticity due to innovation marketing  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Technology goods demand responds strongly to advertising.

Q184. Which of the following is true about advertising elasticity in tourism?  

✅ A) Positive elasticity due to promotional campaigns  

B) Negative elasticity  

C) Zero elasticity  

D) Unitary elasticity  

Explanation: Tourism demand rises with advertising.

Q185. Which of the following is true about advertising elasticity in entertainment?  

✅ A) Positive elasticity due to media promotion  

B) Negative elasticity  

C) Zero elasticity  

D) Unitary elasticity  

Explanation: Entertainment demand responds strongly to advertising.

Q186. Which of the following is true about advertising elasticity in healthcare services?  

✅ A) Low elasticity due to necessity nature  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Healthcare demand is less influenced by advertising.

Q187. Which of the following is true about advertising elasticity in education services?  

✅ A) Low elasticity due to necessity nature  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Education demand is less influenced by advertising.

Q188. Which of the following is true about advertising elasticity in housing demand?  

✅ A) Low elasticity due to necessity and investment nature  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Housing demand is less influenced by advertising.

Q189. Which of the following is true about advertising elasticity in global commodities?  

✅ A) Low elasticity due to necessity nature  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Commodities like oil and food have low advertising elasticity.

Q190. Which of the following is true about advertising elasticity in branded clothing?  

✅ A) High positive elasticity due to fashion trends  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Branded clothing demand rises with advertising.

Q191. Which of the following is true about advertising elasticity in smartphones?  

✅ A) High positive elasticity due to competitive market  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Smartphone demand responds strongly to advertising.

Q192. Which of the following is true about advertising elasticity in beverages like Coke and Pepsi?  

✅ A) High positive elasticity due to brand rivalry  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Beverages respond strongly to advertising.

Q193. Which of the following is true about advertising elasticity in public goods?  

✅ A) Independent of advertising expenditure  

B) Dependent on advertising expenditure  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Public goods demand is collective, not influenced by advertising.

Q194. Which of the following is true about advertising elasticity in e‑commerce platforms?  

✅ A) High positive elasticity due to digital marketing  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: E‑commerce demand rises with advertising.

Q195. Which of the following is true about advertising elasticity in airline services?  

✅ A) Positive elasticity due to promotional offers  

B) Negative elasticity  

C) Zero elasticity  

D) Unitary elasticity  

Explanation: Airline demand responds positively to advertising.

Q196. Which of the following is true about advertising elasticity in banking services?  

✅ A) Low elasticity due to necessity nature  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Banking demand is less influenced by advertising.

Q197. Which of the following is true about advertising elasticity in insurance services?  

✅ A) Low elasticity due to necessity nature  

B) High elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Insurance demand is less influenced by advertising.

Q198. Which of the following is true about advertising elasticity in luxury tourism?  

✅ A) High positive elasticity due to discretionary spending  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: Luxury tourism demand rises with advertising.

Q199. Which of the following is true about advertising elasticity in global markets?  

✅ A) Varies depending on culture, income, and competition  

B) Always high elasticity  

C) Always low elasticity  

D) Always negative elasticity  

Explanation: Advertising elasticity varies globally.

Q200. Which of the following is true about advertising elasticity in FMCG advertising campaigns?  

✅ A) High positive elasticity due to consumer responsiveness  

B) Low elasticity  

C) Negative elasticity  

D) Zero elasticity  

Explanation: FMCG campaigns strongly influence demand.

Q201. Which of the following is an application of elasticity in business pricing?  

✅ A) Firms adjust prices to maximize revenue based on elasticity  

B) Firms ignore elasticity in pricing  

C) Firms always set constant prices  

D) Firms avoid considering demand  

Explanation: Elasticity helps firms set prices strategically.

Q202. Which of the following is true about elasticity in government taxation policy?  

✅ A) Inelastic goods are taxed more heavily  

B) Elastic goods are taxed more heavily  

C) All goods are taxed equally  

D) Elasticity is irrelevant in taxation  

Explanation: Governments tax inelastic goods more as demand doesn’t fall much.

Q203. Which of the following is true about elasticity in subsidy policy?  

✅ A) Subsidies are more effective on elastic goods  

B) Subsidies are more effective on inelastic goods  

C) Subsidies reduce demand  

D) Subsidies are irrelevant  

Explanation: Elastic goods respond strongly to subsidies.

Q204. Which of the following is true about elasticity in monopoly markets?  

✅ A) Monopolists exploit inelastic demand by charging higher prices  

B) Monopolists exploit elastic demand by charging higher prices  

C) Monopolists ignore elasticity  

D) Monopolists always set unitary prices  

Explanation: Monopolists charge higher prices when demand is inelastic.

Q205. Which of the following is true about elasticity in competitive markets?  

✅ A) Firms lower prices when demand is elastic to increase revenue  

B) Firms raise prices when demand is elastic  

C) Firms ignore elasticity  

D) Firms always set constant prices  

Explanation: Elastic demand encourages firms to lower prices.

Q206. Which of the following is true about elasticity in oligopoly markets?  

✅ A) Firms consider rivals’ reactions when demand is elastic  

B) Firms ignore rivals’ reactions  

C) Firms always set constant prices  

D) Firms never consider elasticity  

Explanation: Oligopolists consider rivals’ reactions in pricing decisions.

Q207. Which of the following is true about elasticity in international trade?  

✅ A) Elasticity affects terms of trade and tariff policies  

B) Elasticity is irrelevant in trade  

C) Elasticity is ignored in trade  

D) Elasticity is constant globally  

Explanation: Elasticity influences trade policies and tariffs.

Q208. Which of the following is true about elasticity in agriculture?  

✅ A) Prices fluctuate widely due to inelastic demand  

B) Prices remain constant  

C) Demand is perfectly elastic  

D) Demand is perfectly inelastic  

Explanation: Agricultural goods have inelastic demand, causing price fluctuations.

Q209. Which of the following is true about elasticity in oil demand?  

✅ A) Oil demand is relatively inelastic due to necessity  

B) Oil demand is perfectly elastic  

C) Oil demand is unitary  

D) Oil demand is perfectly inelastic  

Explanation: Oil demand is relatively inelastic.

Q210. Which of the following is true about elasticity in airline tickets?  

✅ A) Leisure travel demand is elastic, business travel demand is inelastic  

B) Both leisure and business travel are elastic  

C) Both leisure and business travel are inelastic  

D) Airline demand is independent of price  

Explanation: Leisure travel is elastic, business travel is inelastic.

Q211. Which of the following is true about elasticity in healthcare demand?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Healthcare demand is relatively inelastic.

Q212. Which of the following is true about elasticity in education demand?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Education demand is relatively inelastic.

Q213. Which of the following is true about elasticity in entertainment demand?  

✅ A) Demand is elastic due to discretionary spending  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Entertainment demand is elastic.

Q214. Which of the following is true about elasticity in tourism demand?  

✅ A) Demand is elastic due to income and global conditions  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Tourism demand is elastic.

Q215. Which of the following is true about elasticity in FMCG goods?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: FMCG goods demand is relatively inelastic.

Q216. Which of the following is true about elasticity in luxury goods?  

✅ A) Demand is highly elastic due to income sensitivity  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury goods demand is highly elastic.

Q217. Which of the following is true about elasticity in technology goods?  

✅ A) Demand is elastic due to innovation and substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Technology goods demand is elastic.

Q218. Which of the following is true about elasticity in housing demand?  

✅ A) Demand is elastic due to interest rate changes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Housing demand is elastic, influenced by interest rates.

Q219. Which of the following is true about elasticity in global commodities?  

✅ A) Elasticity varies depending on substitutes and global conditions  

B) Elasticity is always perfectly elastic  

C) Elasticity is always perfectly inelastic  

D) Elasticity is always unitary  

Explanation: Global commodity elasticity varies with substitutes and conditions.

Q220. Which of the following is true about elasticity in taxation of addictive goods?  

✅ A) Governments impose higher taxes due to inelastic demand  

B) Governments impose lower taxes due to elastic demand  

C) Governments avoid taxing addictive goods  

D) Governments impose equal taxes on all goods  

Explanation: Addictive goods are taxed more due to inelastic demand.

Q221. Which of the following is true about elasticity in subsidy of technology goods?  

✅ A) Subsidies increase demand significantly due to elasticity  

B) Subsidies have no effect  

C) Subsidies reduce demand  

D) Subsidies are irrelevant  

Explanation: Technology goods respond strongly to subsidies.

Q222. Which of the following is true about elasticity in monopoly revenue maximization?  

✅ A) Monopolists lower prices when demand is elastic to maximize revenue  

B) Monopolists raise prices when demand is elastic  

C) Monopolists ignore elasticity  

D) Monopolists always set constant prices  

Explanation: Monopolists lower prices when demand is elastic.

Q223. Which of the following is true about elasticity in government welfare policy?  

✅ A) Elasticity helps design subsidies and welfare programs  

B) Elasticity is irrelevant  

C) Elasticity is ignored  

D) Elasticity is constant  

Explanation: Elasticity guides welfare program design.

Q224. Which of the following is true about elasticity in global crises?  

✅ A) Elasticity changes during crises like inflation or pandemics  

B) Elasticity remains constant  

C) Elasticity is irrelevant  

D) Elasticity is ignored  

Explanation: Elasticity shifts during crises.

Q225. Which of the following is true about elasticity in policy shocks?  

✅ A) Elasticity helps predict demand changes after shocks  

B) Elasticity is irrelevant  

C) Elasticity is ignored  

D) Elasticity is constant  

Explanation: Elasticity predicts demand changes after policy shocks.

Q226. Which of the following is true about elasticity in oil demand case study?  

✅ A) Oil demand is relatively inelastic due to necessity  

B) Oil demand is perfectly elastic  

C) Oil demand is unitary  

D) Oil demand is perfectly inelastic  

Explanation: Oil demand is relatively inelastic because it’s a necessity with few substitutes.

Q227. Which of the following is true about elasticity in airline ticket case study?  

✅ A) Leisure travel demand is elastic, business travel demand is inelastic  

B) Both leisure and business travel are elastic  

C) Both leisure and business travel are inelastic  

D) Airline demand is independent of price  

Explanation: Leisure travel is elastic, business travel is inelastic.

Q228. Which of the following is true about elasticity in smartphone demand case study?  

✅ A) Demand is elastic due to substitutes and innovation  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Smartphone demand is elastic because of substitutes and innovation.

Q229. Which of the following is true about elasticity in food grain demand case study?  

✅ A) Staple food demand is inelastic, luxury food demand is elastic  

B) All food demand is elastic  

C) All food demand is inelastic  

D) Food demand is independent of price  

Explanation: Staple foods are inelastic, luxury foods are elastic.

Q230. Which of the following is true about elasticity in agricultural goods case study?  

✅ A) Prices fluctuate widely due to inelastic demand  

B) Prices remain constant  

C) Demand is perfectly elastic  

D) Demand is perfectly inelastic  

Explanation: Agricultural goods have inelastic demand, causing price fluctuations.

Q231. Which of the following is true about elasticity in housing case study?  

✅ A) Demand is elastic due to interest rate changes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Housing demand is elastic, influenced by interest rates.

Q232. Which of the following is true about elasticity in healthcare case study?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Healthcare demand is relatively inelastic.

Q233. Which of the following is true about elasticity in education case study?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Education demand is relatively inelastic.

Q234. Which of the following is true about elasticity in entertainment case study?  

✅ A) Demand is elastic due to discretionary spending  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Entertainment demand is elastic.

Q235. Which of the following is true about elasticity in tourism case study?  

✅ A) Demand is elastic due to income and global conditions  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Tourism demand is elastic.

Q236. Which of the following is true about elasticity in FMCG case study?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: FMCG goods demand is relatively inelastic.

Q237. Which of the following is true about elasticity in luxury goods case study?  

✅ A) Demand is highly elastic due to income sensitivity  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury goods demand is highly elastic.

Q238. Which of the following is true about elasticity in technology goods case study?  

✅ A) Demand is elastic due to innovation and substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Technology goods demand is elastic.

Q239. Which of the following is true about elasticity in global commodities case study?  

✅ A) Elasticity varies depending on substitutes and global conditions  

B) Elasticity is always perfectly elastic  

C) Elasticity is always perfectly inelastic  

D) Elasticity is always unitary  

Explanation: Global commodity elasticity varies with substitutes and conditions.

Q240. Which of the following is true about elasticity in addictive goods case study?  

✅ A) Demand is relatively inelastic due to habit persistence  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Addictive goods demand is relatively inelastic.

Q241. Which of the following is true about elasticity in luxury tourism case study?  

✅ A) Demand is highly elastic due to discretionary spending  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury tourism demand is highly elastic.

Q242. Which of the following is true about elasticity in branded clothing case study?  

✅ A) Demand is elastic due to fashion trends  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Branded clothing demand is elastic.

Q243. Which of the following is true about elasticity in beverages case study (Coke vs Pepsi)?  

✅ A) Demand is elastic due to substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Coke and Pepsi are substitutes, making demand elastic.

Q244. Which of the following is true about elasticity in public transport vs private cars case study?  

✅ A) Demand is elastic due to substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Public transport and cars act as substitutes.

Q245. Which of the following is true about elasticity in coal vs oil case study?  

✅ A) Demand is elastic due to substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Coal and oil are substitutes, making demand elastic.

Q246. Which of the following is true about elasticity in smartphones vs laptops case study?  

✅ A) Demand is elastic due to substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Smartphones and laptops can act as substitutes.

Q247. Which of the following is true about elasticity in milk and bread case study?  

✅ A) Demand is inelastic due to necessity  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Milk and bread are necessities, making demand inelastic.

Q248. Which of the following is true about elasticity in bread and butter case study?  

✅ A) Demand is inelastic due to complementary nature  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Bread and butter are complements, making demand inelastic.

Q249. Which of the following is true about elasticity in books vs e‑books case study?  

✅ A) Demand is elastic due to substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Books and e‑books are substitutes, making demand elastic.

Q250. Which of the following is true about elasticity in electricity vs kerosene case study?  

✅ A) Demand is elastic due to substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Electricity and kerosene are substitutes, making demand elastic.

Q251. Which of the following is true about elasticity in developed economies?  

✅ A) Demand is more elastic due to availability of substitutes  

B) Demand is less elastic  

C) Demand is perfectly inelastic  

D) Demand is unitary  

Explanation: Developed economies have more substitutes, making demand elastic.

Q252. Which of the following is true about elasticity in developing economies?  

✅ A) Demand is more inelastic due to fewer substitutes  

B) Demand is more elastic  

C) Demand is perfectly elastic  

D) Demand is unitary  

Explanation: Developing economies have fewer substitutes, making demand inelastic.

Q253. Which of the following is true about elasticity in the US market?  

✅ A) Demand is elastic due to competition and substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: US markets have high competition, making demand elastic.

Q254. Which of the following is true about elasticity in the EU market?  

✅ A) Demand is elastic due to consumer choice and regulation  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: EU markets have strong consumer choice, making demand elastic.

Q255. Which of the following is true about elasticity in Indian markets?  

✅ A) Demand is relatively inelastic for necessities  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Necessities in India have inelastic demand.

Q256. Which of the following is true about elasticity in Chinese markets?  

✅ A) Demand is elastic for technology goods  

B) Demand is inelastic for technology goods  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Technology goods in China have elastic demand.

Q257. Which of the following is true about elasticity in African markets?  

✅ A) Demand is inelastic for staple foods  

B) Demand is elastic for staple foods  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Staple foods in Africa have inelastic demand.

Q258. Which of the following is true about elasticity in Middle Eastern oil markets?  

✅ A) Oil demand is relatively inelastic globally  

B) Oil demand is perfectly elastic  

C) Oil demand is unitary  

D) Oil demand is perfectly inelastic  

Explanation: Oil demand is relatively inelastic worldwide.

Q259. Which of the following is true about elasticity in Japanese markets?  

✅ A) Demand is elastic for luxury goods  

B) Demand is inelastic for luxury goods  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury goods in Japan have elastic demand.

Q260. Which of the following is true about elasticity in Latin American markets?  

✅ A) Demand is inelastic for necessities  

B) Demand is elastic for necessities  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Necessities in Latin America have inelastic demand.

Q261. Which of the following is true about elasticity in global technology markets?  

✅ A) Demand is elastic due to innovation and substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Technology markets globally have elastic demand.

Q262. Which of the following is true about elasticity in global healthcare markets?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Healthcare demand is relatively inelastic worldwide.

Q263. Which of the following is true about elasticity in global education markets?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Education demand is relatively inelastic globally.

Q264. Which of the following is true about elasticity in global entertainment markets?  

✅ A) Demand is elastic due to discretionary spending  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Entertainment demand is elastic globally.

Q265. Which of the following is true about elasticity in global tourism markets?  

✅ A) Demand is elastic due to income and global conditions  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Tourism demand is elastic worldwide.

Q266. Which of the following is true about elasticity in global FMCG markets?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: FMCG goods demand is relatively inelastic globally.

Q267. Which of the following is true about elasticity in global luxury goods markets?  

✅ A) Demand is highly elastic due to income sensitivity  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury goods demand is highly elastic worldwide.

Q268. Which of the following is true about elasticity in global housing markets?  

✅ A) Demand is elastic due to interest rate changes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Housing demand is elastic globally.

Q269. Which of the following is true about elasticity in global commodity markets?  

✅ A) Elasticity varies depending on substitutes and global conditions  

B) Elasticity is always perfectly elastic  

C) Elasticity is always perfectly inelastic  

D) Elasticity is always unitary  

Explanation: Commodity elasticity varies globally.

Q270. Which of the following is true about elasticity in global crises (e.g., COVID‑19)?  

✅ A) Elasticity shifts significantly during crises  

B) Elasticity remains constant  

C) Elasticity is irrelevant  

D) Elasticity is ignored  

Explanation: Elasticity changes during crises.

Q271. Which of the following is true about elasticity in inflation shocks?  

✅ A) Elasticity shifts as consumers reduce discretionary spending  

B) Elasticity remains constant  

C) Elasticity is irrelevant  

D) Elasticity is ignored  

Explanation: Inflation shocks alter elasticity.

Q272. Which of the following is true about elasticity in recession periods?  

✅ A) Elasticity increases for luxury goods, decreases for necessities  

B) Elasticity decreases for luxury goods  

C) Elasticity remains constant  

D) Elasticity is irrelevant  

Explanation: Recessions increase elasticity for luxuries, decrease for necessities.

Q273. Which of the following is true about elasticity in boom periods?  

✅ A) Elasticity decreases for necessities, increases for luxuries  

B) Elasticity increases for necessities  

C) Elasticity remains constant  

D) Elasticity is irrelevant  

Explanation: Booms increase elasticity for luxuries.

Q274. Which of the following is true about elasticity in global energy markets?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Energy demand is relatively inelastic worldwide.

Q275. Which of the following is true about elasticity in global financial services?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Financial services demand is relatively inelastic globally.

Q276. When demand is highly elastic, what happens to total revenue if price increases?  

✅ A) Total revenue decreases  

B) Total revenue increases  

C) Total revenue remains constant  

D) Total revenue is unaffected  

Explanation: With elastic demand, price rise reduces revenue.

Q277. When demand is highly inelastic, what happens to total revenue if price increases?  

✅ A) Total revenue increases  

B) Total revenue decreases  

C) Total revenue remains constant  

D) Total revenue is unaffected  

Explanation: With inelastic demand, price rise increases revenue.

Q278. If elasticity of demand is equal to 1, what happens to total revenue when price changes?  

✅ A) Total revenue remains constant  

B) Total revenue increases  

C) Total revenue decreases  

D) Total revenue is unaffected  

Explanation: Unitary elasticity keeps revenue constant.

Q279. Which of the following is true about elasticity in taxation policy?  

✅ A) Governments prefer taxing goods with inelastic demand  

B) Governments prefer taxing goods with elastic demand  

C) Governments tax all goods equally  

D) Elasticity is irrelevant  

Explanation: Inelastic goods are taxed more as demand doesn’t fall much.

Q280. Which of the following is true about elasticity in subsidy policy?  

✅ A) Subsidies are more effective on elastic goods  

B) Subsidies are more effective on inelastic goods  

C) Subsidies reduce demand  

D) Subsidies are irrelevant  

Explanation: Elastic goods respond strongly to subsidies.

Q281. Which of the following is true about elasticity in monopoly pricing?  

✅ A) Monopolists exploit inelastic demand by charging higher prices  

B) Monopolists exploit elastic demand by charging higher prices  

C) Monopolists ignore elasticity  

D) Monopolists always set unitary prices  

Explanation: Monopolists charge higher prices when demand is inelastic.

Q282. Which of the following is true about elasticity in competitive markets?  

✅ A) Firms lower prices when demand is elastic to increase revenue  

B) Firms raise prices when demand is elastic  

C) Firms ignore elasticity  

D) Firms always set constant prices  

Explanation: Elastic demand encourages firms to lower prices.

Q283. Which of the following is true about elasticity in oligopoly markets?  

✅ A) Firms consider rivals’ reactions when demand is elastic  

B) Firms ignore rivals’ reactions  

C) Firms always set constant prices  

D) Firms never consider elasticity  

Explanation: Oligopolists consider rivals’ reactions in pricing decisions.

Q284. Which of the following is true about elasticity in international trade?  

✅ A) Elasticity affects terms of trade and tariff policies  

B) Elasticity is irrelevant in trade  

C) Elasticity is ignored in trade  

D) Elasticity is constant globally  

Explanation: Elasticity influences trade policies and tariffs.

Q285. Which of the following is true about elasticity in global energy markets?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Energy demand is relatively inelastic worldwide.

Q286. Which of the following is true about elasticity in luxury goods markets?  

✅ A) Demand is highly elastic due to income sensitivity  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Luxury goods demand is highly elastic.

Q287. Which of the following is true about elasticity in technology goods markets?  

✅ A) Demand is elastic due to innovation and substitutes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Technology goods demand is elastic.

Q288. Which of the following is true about elasticity in healthcare demand?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Healthcare demand is relatively inelastic.

Q289. Which of the following is true about elasticity in education demand?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Education demand is relatively inelastic.

Q290. Which of the following is true about elasticity in entertainment demand?  

✅ A) Demand is elastic due to discretionary spending  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Entertainment demand is elastic.

Q291. Which of the following is true about elasticity in tourism demand?  

✅ A) Demand is elastic due to income and global conditions  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Tourism demand is elastic worldwide.

Q292. Which of the following is true about elasticity in FMCG goods?  

✅ A) Demand is relatively inelastic due to necessity  

B) Demand is perfectly elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: FMCG goods demand is relatively inelastic.

Q293. Which of the following is true about elasticity in housing demand?  

✅ A) Demand is elastic due to interest rate changes  

B) Demand is inelastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Housing demand is elastic, influenced by interest rates.

Q294. Which of the following is true about elasticity in addictive goods?  

✅ A) Demand is relatively inelastic due to habit persistence  

B) Demand is elastic  

C) Demand is unitary  

D) Demand is perfectly inelastic  

Explanation: Addictive goods demand is relatively inelastic.

Q295. Which of the following is true about elasticity in global commodity markets?  

✅ A) Elasticity varies depending on substitutes and global conditions  

B) Elasticity is always perfectly elastic  

C) Elasticity is always perfectly inelastic  

D) Elasticity is always unitary  

Explanation: Commodity elasticity varies globally.

Q296. Which of the following is true about elasticity in crisis situations?  

✅ A) Elasticity shifts significantly during crises like inflation or pandemics  

B) Elasticity remains constant  

C) Elasticity is irrelevant  

D) Elasticity is ignored  

Explanation: Elasticity changes during crises.

Q297. Which of the following is true about elasticity in inflation shocks?  

✅ A) Elasticity shifts as consumers reduce discretionary spending  

B) Elasticity remains constant  

C) Elasticity is irrelevant  

D) Elasticity is ignored  

Explanation: Inflation shocks alter elasticity.

Q298. Which of the following is true about elasticity in recession periods?  

✅ A) Elasticity increases for luxury goods, decreases for necessities  

B) Elasticity decreases for luxury goods  

C) Elasticity remains constant  

D) Elasticity is irrelevant  

Explanation: Recessions increase elasticity for luxuries, decrease for necessities.

Q299. Which of the following is true about elasticity in boom periods?  

✅ A) Elasticity decreases for necessities, increases for luxuries  

B) Elasticity increases for necessities  

C) Elasticity remains constant  

D) Elasticity is irrelevant  

Explanation: Booms increase elasticity for luxuries.

Q300. Which of the following is true about elasticity in integrated policy analysis?  

✅ A) Elasticity helps link demand theory with taxation, subsidies, and welfare programs  

B) Elasticity is irrelevant in policy  

C) Elasticity is ignored in policy  

D) Elasticity is constant globally  

Explanation: Elasticity is central to integrated policy analysis.