Question # 1

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

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Elasticity of demand = 1

Elasticity of demand < 1

Elasticity of demand > 1

Elasticity of demand = 0

If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is:

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Equal to zero

Equal to one

Smaller than one

Greater than one

If supply goes on increasing due to a slight increase in price, then elasticity of supply is called

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Zero

Infinite

Equal to unity

More than unity

If same amount of good is supplied at higher price, it is called

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Expansion of supply

Contraction of supply

Fall in supply

Rise in supply

If there is slight change in price and demand, it is called

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Arc elasticity

Point elasticity

Income elasticity

Cross elasticity

Quickly destroyable goods are called

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Superior goods

Inferior goods

Perishable goods

Giffen godds

Reserve price of a commodity is that price

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Which is more than the cost of production of the seller

At which the seller sells his commodity tn the market

Which is equal to the cost of production of the seller

Below which the seller is not ready to sell his commodity

Supply of goods depends on

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price

income

income and price

utility

Unity method to measure elasticity of demand was presented by

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Adam smith

Robbins

Marshall

Keynes

Kinds of supply according to period of time are

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Two

Three

Four

Five

If demand curve is parallel to y-axis, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

Relationship between price and quantity demanded is called

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Demand schedule

Demand curve

Law of demand

Assumptions of law of demand

When demand and supply rise equally then equilibrium price

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isles

is more

Remains the source

Zero

If demand decreases by 15% due to 10% increase in Price, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

That particular price below which price the seller is not ready to sell his commodity, is called

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Market price

Normal price

Reserve price

All the three

Who did present unity method to measure elasticity of demand

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Adam Smith

Marshall

Robbins

keynes

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

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