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Business Analytics · Quiz 1 · 16 Jul 2023 · May 2023 term

Question 16: Given the computed elasticity, what can you say about th…

Question 16

+1 markOne or more correct options

Your local grosser has observed that the demand for Butter Milk follows a linear demand response curve. Hence, he has decided to raise the “Butter Milk” price by Rs. 5 rupees per bottle to Rs. 15 per bottle. If the demand was 100 units per day before the rise and is now 80 units per day after the rise, then answer the given subquestions.

Given the computed elasticity, what can you say about the “Butter Milk” demand? (choose all that are applicable)

Select all that apply.

  1. A

    It is elastic

  2. B

    It is inelastic

  3. C

    It is a luxury

  4. D

    It is a necessity

  5. E

    Cannot say, insufficient information

Show answer

Correct answer

  • B

    It is inelastic

See the whole paperTake it as a mock test

Question 16 of 16 in the IIT Madras BS Business Analytics (Business Analytics) Quiz 1 paper sat on 16 Jul 2023, in the May 2023 term (IIT M DIPLOMA AN2 EXAM QPD2 16 JULY 2023). It carries 1 mark.

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