Elasticity of Demand & Supply – types, percentage method, influencing factors Quiz - ICSE Class 10 Economics

Free practice quiz: Elasticity of Demand & Supply – types, percentage method, influencing factors (ICSE Class 10 Economics). 35 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

This ICSE Class 10 Economics practice quiz has 35 multiple-choice questions on Elasticity of Demand & Supply – types, percentage method, influencing factors, and 35 of them come with an explanation. Try the 5 sample questions below (tap an option to check yourself), then play the full quiz online. No sign-up needed.

Sample questions

1. When the percentage change in quantity demanded is exactly equal to the percentage change in price, the elasticity of demand is:

   1. Perfectly elastic
   2. Perfectly inelastic
   3. Unit elastic
   4. Relatively elastic
   Show answer

   Answer: C. Unit elastic

   Unit elasticity occurs when the percentage change in quantity demanded is equal to the percentage change in price, resulting in an elasticity coefficient of 1.

2. If a 10% increase in the price of good A leads to a 5% decrease in the quantity demanded of good B, then goods A and B are:

   1. Complements
   2. Substitutes
   3. Independent
   4. Inferior goods
   Show answer

   Answer: A. Complements

   When the price of one good (A) increases and the demand for another good (B) decreases, it indicates that the goods are used together (complements). A classic example is the relationship between printers and ink cartridges.

3. If the income elasticity of demand for a good is negative, the good is likely a(n):

   1. Normal good
   2. Inferior good
   3. Luxury good
   4. Complementary good
   Show answer

   Answer: B. Inferior good

   A negative income elasticity of demand means that as income rises, the demand for the good falls. These are characteristic of inferior goods, which consumers tend to switch away from as their income increases.

4. The supply of concert tickets for a sold-out show on a particular night is likely to be:

   1. Elastic
   2. Inelastic
   3. Unit elastic
   4. Perfectly elastic
   Show answer

   Answer: B. Inelastic

   Once the venue capacity is reached, the quantity of tickets available is fixed for that specific event. The supply of tickets for that particular show is therefore inelastic, as it cannot be increased regardless of price.

5. Which of the following is most likely to have perfectly inelastic supply?

   1. A manufactured good with ample spare capacity
   2. Agricultural products
   3. A unique piece of art by a deceased artist
   4. A commodity with many close substitutes
   Show answer

   Answer: C. A unique piece of art by a deceased artist

   The supply of a unique item, especially one that cannot be reproduced (like art by a deceased artist), is fixed regardless of price. This is the definition of perfectly inelastic supply.

More questions in this quiz

Answers and explanations are in the full quiz.

1. If the percentage change in quantity supplied is greater than the percentage change in price, the supply is:
2. Which of the following is a factor that influences the elasticity of demand for a good?
3. The demand for a luxury item is typically:
4. When the demand curve is a rectangular hyperbola, the elasticity of demand is:
5. Which factor would make the supply of a product more elastic?
6. Goods that are necessities, like basic food items, tend to have demand that is:
7. The supply of agricultural products in the short run is typically:
8. If the income elasticity of demand for a good is positive and greater than 1, the good is considered a:
9. When the percentage change in quantity supplied is zero, regardless of the price change, the supply is:
10. Which of the following best describes a situation of perfectly elastic demand?
11. Consider the percentage method for elasticity: If Ed = -3, this implies that the demand is:
12. A firm's ability to increase production without a significant rise in costs will lead to:
13. The cross elasticity of demand between tea and coffee is likely to be:
14. The elasticity of supply of a product is more likely to be higher when:
15. If the income elasticity of demand for a good is 0.8, it means that as income rises by 1%, the quantity demanded of the good rises by:
16. When a 5% increase in the price of good X causes a 10% decrease in the quantity demanded of good Y, the goods are:
17. If a 10% increase in price leads to a 10% increase in quantity supplied, the elasticity of supply is:
18. A higher proportion of income spent on a good generally leads to:
19. A perfectly inelastic demand curve is:
20. Which factor makes supply MORE elastic?
21. If a 20% increase in price leads to a 5% decrease in quantity supplied, the supply is:
22. The demand for a specific brand of toothpaste is likely to be:
23. When the percentage change in quantity demanded is less than the percentage change in price, demand is:
24. If a 10% increase in the price of good X causes a 20% increase in the quantity demanded of good Y, the goods are:
25. If the income elasticity of demand for a good is negative, it means that as income increases, the demand for the good:
26. The availability of close substitutes for a product tends to make its demand:
27. If the price of a product increases by 10%, and producers are able to increase the quantity supplied by 15%, the supply is:
28. The term 'price elasticity of demand' refers to:
29. If a 10% increase in price causes quantity supplied to increase by 10%, supply is:
30. The period of production is crucial for elasticity of supply. In the short run, supply is generally:

More quizzes

• Factors of Production – land, labour, capital, entrepreneur▶ Play
• Inflation – WPI, CPI, food basket, types & stages of inflation▶ Play
• Market Structures – perfect competition, monopoly, monopolistic competition, oligopoly▶ Play
• Monetary Policy – qualitative (margin, rationing, moral suasion) & quantitative (bank rate, OMO, CRR, SLR)▶ Play
• Money – evolution, functions & instruments▶ Play
• Public Finance – public revenue (direct, indirect tax; GST; non‑tax), public expenditure (revenue vs capital), public debt▶ Play

Browse all Economics quizzes

More to play