1 |
If supply curve is vertical (parallel to y-axis), then elasticity of supply is |
- A. Zero
- B. Infinite
- C. Equal to unity
- D. More than unity
|
2 |
If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is: |
- A. Equal to zero
- B. Equal to one
- C. Smaller than one
- D. Greater than one
|
3 |
Quantity of a commodity offered for sale in a market at a certain price during a given period of time, is called |
- A. Stock
- B. Demand
- C. Supply
- D. Quantity demanded
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4 |
When demand curve shifts rightward (or upward), it is called |
- A. Rise of demand
- B. Fall of demand
- C. Extension of demand
- D. Contraction of demand
|
5 |
What is meant by demand for a commodity in economics |
- A. To desire for a commodity
- B. To have power to buy
- C. To have power to buy a commodity with desire
- D. Quantity of a commodity
|
6 |
If there is slight change in price and demand, it is called |
- A. Arc elasticity
- B. Point elasticity
- C. Income elasticity
- D. Cross elasticity
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7 |
Degree of change in quantity supplied due to change in price is called |
- A. Extension of supply
- B. Rise of supply
- C. Elasticity of supply
- D. None of three
|
8 |
When the price of a commodity increases but its demand does not change, this situation is called |
- A. Constant demand
- B. Fall of demand
- C. Rise of demand
- D. Contraction of demand
|
9 |
Demand for Giffen goods is: |
- A. Negative
- B. Vertical
- C. Positive
- D. All of them
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10 |
If the percentage change in supply is more than the percentage change in price, then elasticity of supply is called |
- A. Equal to unity
- B. Less than unity
- C. More than unity
- D. Infinite
|