Question

If the elasticity is greater than 1, demand is which of the following:

Select one:

a. elastic

b. unit elastic

c. unelastic

d. inelastic

.

Which of the following is the net gain to a seller from selling a good?

Select one:

a. Individual consumer surplus

b. Individual producer surplus

c. Individual consumer shortage

d. Individual producer shortage

Answer 1

Ans 1:-a. Elastic

example:-elasticity refers to the ratio of the relative change in a dependent to the relative change in an independent variable.Elasticity of demand may be of various type .i.e price,income and cross elasticity of demand.The change in quantity demanded due to a change in price is known as price elasticity of demand.The elastic demand is one in which the elasticity is greater than one is called elastic demand and the elastic demand in which the elasticity is less than one is called inelastic demand.

Ans 2:-b. Individual producer surplus

explanation:-The net gain to a seller from selling a good is called individual producer supply.The individual consumer surplus means the difference between the price that the consumer pay and the price that the consumers interest to pay.