Question

37 Which of the following items would be expected to have the lowest price elasticity of demand?

a.	Food
b.	Green beans
c.	Chicken
d.	Hamburgers
e.	Fish 31 The demand for a product is said to be inelastic if total consumer expenditures a. remain constant as price changes. b. rise more than price rises as a percentage. c. fall when price falls. d. fall when price rises.

Answer 1

37)

Elasticity of demand measures the how much the quantity demand changes when the price of good changes .different good have different elasticity .elasticity of a good is determined by various factors such as the importance of a good how sacre availability of a good .the good which has more importance in consumers choice or have more preferred realtive to other goods may have the less elasticity of demand .

Given the products

Food , green beans , chicken, hamburgers and fish

The food will have the lowest expected elasticity because food is the necessary good for a person to live whaeres others are the components of the food ( we can say that if food is group of a goods then remaining other products are components of the group food ) therefore as price changes the demand of green beans, chicken, hamburgers and fish may changes more than the demand of food .

Therefore answer is a)

31)

When demand is inelastic the fall in the price of a good resulted in fall in expenditure on that good (because good has inelastic demand ) and rise in the price of a good resulted in increse in the total expenditure on that good .implies that when a good has a inelastic demand the prices and total expenditure moves in a same direction.

Therefore ans is C)

the demand of a product is said to be inelastic if total expenditure falls when prices falls.