Scribd
Upload
16 views2 pages

Grade 10 Econo

Uploaded by

Mame Mili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
16 views2 pages

Grade 10 Econo

Uploaded by

Mame Mili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Abune Gorgorios Secondary School

Economics Tutorial Questions for Grade 10 26/04/2017


Multiple choice
1. When price elasticity of demand is measured at a point on a demand curve, it is called
A. point elasticity. B. Price elasticity C. Cross elasticity D. income elasticity
2. When elasticity of demand is measured over a finite range of a demand curve, it is called
A. arc elasticity of demand. B. point elasticity C. Cross elasticity D. Elastic
3. The price elasticity of demand is:
A. The ratio of the percentage change in quantity demanded to the percentage change in price.
B. The responsiveness of revenue to a change in quantity.
C. The ratio of the change in quantity demanded divided by the change in price.
D. The response of revenue to a change in price.
4. When the coefficient is less than one, the said good can be described as
A. Inelastic B. Elastic C. Perfectly Inelastic D. Perfectly elastic
5. ……………………measures the relationship between change in quantity supplied and a change in price.
A. Price elasticity of supply C. Price elasticity of demand
B. Elasticity D. All of the above
6. When the price of oranges increases from Br.4 to Br.6 per bag, the quantity demanded of oranges
decreases from 800 to 700. The price elasticity of demand curve over this price rage is equal to
. Use the mid- point method for your calculation.

A. 3 B. 3/7 or 0.4286 C. 1/3 or 0.333 D. ¼ or 0.25

7. Which of the following statements is true?


A. The short run supply curve is more elastic than the long run supply curve.
B. The long run supply curve is more elastic than the short run supply curve.
C. Short run and long run supply curves have the same elasticities.
D. Long run supply curve is always perfectly elastic.

8. The equilibrium price in this market is equal to:


A. Br. 6 per unit. B. Br. 5 per unit. C. Br.4 per unit. D. Br.3 per unit.
9. At a price of Br.8, there is:
A. Excess demand (a shortage) of 25 units. C. Excess demand (a shortage) of 15 units.
B. Excess supply (a surplus) of 15 units. D. Excess supply (shortage) of 25 units.
10. Suppose a 50% increase in the price of a drug results in no change in the quantity demanded. What
is the price elasticity of the drug?
A. 0 B. 0.05 C. 0.5 D. 1
11. Suppose that the price elasticity of supply for toothpaste is 0.2. If the price of toothpaste increases
by 30%, what would we expect to happen to the quantity of toothpaste supplied?
A. increase by 3% B. decrease by 5% C. increase by 60% D. increase by 6%
12. Suppose a grocery store normally sells 100 cartons of milk per day and the price elasticity of
demand for milk is 1.7. If the store lowers the price of milk by 10%, about how many cartons of milk
will it then sell per week?
A. 117 B. 93 C. 75 D. 101.7
13. which one of the ff is refers to the degree of responsiveness of demand for a commodity to the
change in price of its related goods?
A. Income elasticity of demand C. Cross Elasticity of demand:
B. Price elasticity of demand D. Elasticity of demand
14. If the demand is perfectly inelastic, the demand curve will be
A. Horizontal B. vertical C. undefined D. none of the above

WORKOUT

1. If price of a commodity falls from Birr 60 per unit to Birr 58 per unit, its supply decreases
from 400 to 300 units. Find out its elasticity of supply.
2. The coefficient of elasticity of supply of a commodity is 3. A seller supplies 20 units of
this commodity at a price of Birr 8 per unit. How much of this commodity will the seller
supply when price rises by Birr 2 per unit?
3. The quantity supplied of a commodity at a price of Birr 8 per unit is 400 units. Its price
elasticity of supply is 2. Calculate the price at which its quantity supplied is 600 units.
4. When the price of a commodity falls from Birr 10 per unit to Birr 9 per unit, its quantity
supplied falls by 20%. Calculate its price elasticity of supply.
5. Suppose the market demand function for good X is given by Qx = 30 – 2P, and the supply
function for good X is given by Qx = – 6 + P. Then, calculate the:
a. market clearing price and quantity respectively.
b. price and supply elasticity of demand.
6. Let there be 5000 identical buyers of a commodity X in a market with an individual
demand function of DX = 8 – PX, and 1000 identical sellers of commodity X with an
individual supply function of SX = 20 PX, where DX is quantity demanded, SX is quantity
supplied and PX is price of the commodity X.
7. Draw perfectly inelastic and perfectly elastic demand curve.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy