Practice Theory of Demand and Supply Questions and Answers

• Which of the following is true for income elasticity of demand? (1) It measures the responsiveness of quantity demanded of a good with respect to consumer...
• For normal goods, the demand curve has a/an_______ slope.
• What is the likely elasticity of supply when the supply curve is a straight line, vertical to the x-axis?
• Which of the following is/are constant along a demand curve? (1) Income of the consumers (2) Price of related goods
• A perfectly elastic demand curve is