Elasticity of demand for salt is:
Options
AZero
BUnity
Cgreater than unity
Dless than unity
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Theory of Demand and SupplyPYQ - Dec 2021Question 30 of 20
All Questions Correct Answer
✅ Option a — Zero
All Options:
- AZero
- BUnity
- Cgreater than unity
- Dless than unity
About This Chapter: Theory of Demand and Supply
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Law of Demand/Supply, Elasticity, Consumer Behavior
One of the most important chapters in the entire CA Foundation Economics paper. It covers the Law of Demand, Law of Supply, Elasticity of Demand (Price, Income, and Cross), Consumer Behavior (Cardinal and Ordinal approaches), and the concept of Consumer Surplus. Understanding demand and supply curves and their shifts is essential for grasping market dynamics.
View Official ICAI SyllabusExam Strategy Tip
Master the difference between 'Change in Demand' (shift) and 'Change in Quantity Demanded' (movement). This distinction alone can secure 3-5 marks. Also practice Elasticity numerical calculations.
Key Concepts to Understand
Related Comparison Tables
More Questions from Theory of Demand and Supply
Demand for a commodity refers to:
Contraction of demand is the result of:
All but one of the following are assumed to remain the same while drawing the demand curve for a commodity. Which one is it?
Which of the following pairs of goods is an example of substitutes?
In the case of a straight line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be:
The Law of Demand, assuming other things to remain constant, establishes the relationship between:
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