Dedicated to the Young and Energetic Force of Bankers
Sign In/Sign Out

WELCOME

   ABM-Case Studies

   ABM-Recollected

   ABM-Last Minute

   BFM-Case Studies

   BFM-Recollected

   BFM-Last Minute

   Important Circulars

   Master Circulars

   Bank DA Rates

   Bank Holidays

   Life Ins Companies

   List of PSBs

   List of Private Banks

   List of Foreign Banks

 

CAIIB - ABM- CASE STUDIES / NUMERICAL QUESTIONS

When the price of a product increases by 20%, the demand for the product decreases for 800 to 600. What is the price elasticity of demand for the product?

a. 1
b. 1.25
c. 1.5
d. 1.75

Ans - b

Solution :

Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price

% Change in Quantity Demanded = 200/800*100 = 25
% Change in Price = 20

Price Elasticity of Demand = 25/20 = 1.25
.............................................

At Rs. 20 demand for sugar is 300 Kg. When the price falls to Rs. 18, the demand increases to 390 Kg. The price elasticity of demand of sugar is ......

a. 2
b. 2.5
c. 3
d. 3.5

Ans - c

Solution :
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
% Change in Quantity Demanded = 90/300*100 = 30
% Change in Price = 2/20*100 = 10

Price Elasticity of Demand = 30/10 = 3
.............................................

When pizza prices rise 40%, the quantity of pizzas supplied rises by 26%. Calculate the price elasticity of supply.

a. 0.50
b. 0.65
c. 0.75
d. 0.85

Ans - b

Solution :
Price Elasticity of Supply = (% change in quantity supplied. / (% change in price)
= 26/40 = 0.65
.............................................

When the price of a commodity falls from Rs. 75 per unit to Rs. 60 per unit, the quantity supplied falls by 40%. Calculate the price elasticity of supply.

a. 1
b. 1.5
c. 2
d. 2.5

Ans - c

Solution :

Price Elasticity of Supply = (% change in quantity supplied) / (% change in price)

= 40/(75-60)*100/75
= 40/15*100/75
= 40/20
= 2
.............................................

When chicken prices rise 40%, the quantity of KFC fried chicken supplied rises by 30%. Calculate the price elasticity of supply.

a. 0.50
b. 0.65
c. 0.75
d. 0.85

Ans - c

Solution :

B is the right ans.
Price Elasticity of Supply = (% change in quantity supplied) / (% change in price)

= 30/40 = 0.75

……………………………………………………………………………………………………………………………………………

 


WEBSITES

  Bank Promotion exams

  Only for Bankers

  RBI

  IIBF

  IRDA

  SEBI

  BCSBI

  CIBIL

  Banking and Insurance

  Ministry of Finance

  Excise & Customs

  Income Tax Department

  NSE

  BSE


       

Copyright @ 2017 : www.jaiibcaiibmocktest.com