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Business Analytics · Quiz 1 · 23 Feb 2025 · January 2025 term

Question 15: Given the computed elasticity, what can you say about th…

Question 15

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(The following comprehension is purely imaginary)
A local grosser has observed that the demand for Milk follows a linear demand response curve. Hence, he has decided to raise the “Milk” price by Rs. 5 rupees per litre to Rs. 45 per litre. If the demand was 300 litres per day before the rise and is now 100 litres per day after the rise, then answer the given subquestions.

Given the computed elasticity, what can you say about the “Milk” demand? (choose all that is/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

  • A

    It is elastic

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Question 15 of 18 in the IIT Madras BS Business Analytics (Business Analytics) Quiz 1 paper sat on 23 Feb 2025, in the January 2025 term (IIT M DIPLOMA AN EXAM QDD2 23 Feb 2025). It carries 1 mark.

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