# IGCSE Economics Paper-1: Specimen Questions with Answers 46 - 47 of 64

## Question 46

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### Question

MCQ▾

At a price of Rs. 300, a fiction novel production house is expected to sell 10,000 copies. If the novel is offered for sale at a price of Rs. 275, then the publisher can expect to sell

### Choices

Choice (4)
a.10,000 copies
b.More than 10,000 copies
c.Not possible to predict
d.Less than 10,000 copies

b.

### Explanation

• At a price of Rs. 300, production house is selling 10,000 copies, when a discount is offered to customers at Rs. 25 less than the market price the sales of the novel will increase because of the inverse relationship between the price of a commodity and demand for the product.
• The consumers to increase their consumer surplus always want to buy at the lowest price to get the maximum utility. On discount being offered by the seller, production house would ultimately observe an increase the sales of the novel.

## Question 47

Edit

### Question

MCQ▾

Calculate the elasticity of demand, if 4 % increase in price results in a 12 % decrease in quantity demanded:

Choice (4)
a.
b.6
c.2
d.3