Question # 1

Cause of shifting of demand curve is

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Change in price

Desire

Other factors

Exceptions

In which direction demand and supply curves move

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Same

Opposite

parallel

Horizontal

If demand and supply both fall in the same proportion

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity increases

Supply of goods depends on

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price

income

income and price

utility

Demand for good like Television and VCR is

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Less elastic

More elastic

Perfectly inelastic

Infinitely elastic

The term demand in economics means:

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Desire

Purchasing

Need

Both (a) and (b)

If the total expenditure of the consumer does not change due to increase or decrease (change) in price, then nature of elasticity of demand will be

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Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

In case of fall in demand, demand curve shifts:

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Left side

Right side

Downward

Both (a) and (c)

Non elastic demand curve is

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positive

negative

vertical

horizontal

The cause of shifting of supply curve is

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Change in price

Other factors

change in serving

change in demand

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 quantity demand changes due to the change in income, it is called:

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Point Elasticity of demand

Arc Elasticity of demand

Income Elasticity of demand

Price Elasticity of demand

Finance minister imposes tax on the goods having more elastic demand

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At low rate

At high rate

At the same rate

At zero rate

If demand for a commodity changes due to change in price of its substitute, it is called

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Price elasticity

Point elasticity

Cross elasticity

Arc elasticity

When supply curve shifts leftwards or up, it is called

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Rise of supply

Fall of supply

Extension of supply

Contraction of supply

Demand for Giffen goods is:

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Negative

Vertical

Positive

All of them

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

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