Question # 1

Quantity of a commodity offered for sale in a market at a certain price during a given period of time, is called

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Stock

Demand

Supply

Quantity demanded

The price at which quantity demanded and supplied are equal

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Equilibrium price

Reserve price

Fixed price

Variable price

If the total expenditure of the consumer increases due to increase 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

The price at which entrepreneur has a sufficient time to meet the demand, is called

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Market price

Normal price

Reserve price

Normal price

Due to rise in demand, demand curve shifts to

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Right

Left

Both sides

None of these

Supply of perishable goods is

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More elastic

less elastic

Perfectly inelastic

infinite elasticity of supply

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

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Rise of supply

Fall of supply

Extension of supply

Contraction of supply

Unity method to measure elasticity of demand was presented by

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Adam smith

Robbins

Marshall

Keynes

If the demand for a commodity is less elastic, then an entrepreneur in order to increase his profit

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Will increase its price

Will decrease its price

Will not change its price

None of these

If the ratio of change in demand is less than the ratio of change in price, elasticity of demand will be

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More than unity

Less than unity

Equal to unity

Zero

Desire + Purchasing power is equal to:

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Demand

Supply

Income

Utility

If percentage change in supply is less than the percentage change in price, then elasticity of supply is called

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Equal to unity

Less than unity

More than unity

Zero

Supply curve moves from left to right upward, this tendency is called

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Negative

Positive

Horizontal

Vertical

Elasticity of demand for luxuries is

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Equal to unity

More than unity

Less than unity

Zero

In which direction demand and supply curves move

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Same

Opposite

parallel

Horizontal

If two goods are complimentary, cross Elasticity of demand will be:

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Zero

Infinite

Positive

Negative

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

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