Question # 1

If the total expenditure of the consumer decreases due to decrease in price, then nature of elasticity of demand will be

Choose an answer

Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

Supply of goods depends upon

Choose an answer

Price

Income

Price and income

Utility

Flux method is also known as:

Choose an answer

Percentage method

Unitary method

Total expenditure method

All of them

Cause of shifting of demand curve is

Choose an answer

Change in price

Desire

Other factors

Exceptions

If the total expenditure of the consumer increases due to increase in price, then nature of elasticity of demand will be

Choose an answer

Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

Price and demand has a relationship:

Choose an answer

Negative

Positive

Functional

Both a & c

When demand curve shifts leftward (or downward), it is called

Choose an answer

Rise of demand

Fall of demand

Extension of demand

Contraction of demand

If price of a commodity remains constant but its supply decreases or price increases but supply remains constant, it is called

Choose an answer

Rise of supply

Extension of supply

Fall of supply

Contraction of supply

If demand decreases by 5% due to 10% increase in Price, then elasticity of demand is

Choose an answer

Equal to unity

More than unity

Less than unity

Zero

If 50% change in demand in response of 30% change in price then:

Choose an answer

Elasticity of demand = 1

Elasticity of demand < 1

Elasticity of demand > 1

Elasticity of demand = 0

Equilibrium means

Choose an answer

the condition that is not possible

an unstable condition

a condition that can change

stable position

Market price will be determined where

Choose an answer

Supply is more than demand

Demand is more than supply

Demand and supply are equal

Demand is less elastic and supply is more elastic

The cause of rise and fall of demand is

Choose an answer

income

price

population

Both 1st and 3rd

Quantity of a commodity which a person is ready to purchase at a particular price, is called

Choose an answer

Individual demand

Market demand

Supply

Market Supply

According to law of demand, curve moves from left to right downward. This type of tendency is called

Choose an answer

Positive tendency

Negative tendency

Extension and contraction of demand

Rise and fall of demand

Unitary method is also known as:

Choose an answer

Total revenue

Total satisfaction

Total utility

Total expenditure

More Classes

Other Links

Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer