Question # 1

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

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Rise of supply

Extension of supply

Fall of supply

Contraction of supply

Quantity of a commodity which the consumers are ready to purchase at a particular price, is called

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Demand

Supply

Stock

Demand and supply

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

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Zero

Infinite

Positive

Negative

When demand curve shifts rightward (or upward), it is called

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Rise of demand

Fall of demand

Extension of demand

Contraction of demand

If supply increase due to increase in price, it is called

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Extension of supply

Contraction of supply

Rise of supply

Fall of supply

If 50% change in demand in reposne of 50% change in price then:

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Elasticity of demand = 1

Elasticity of demand < 1

Elasticity of demand > 1

Elasticity of demand = 0

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

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Positive tendency

Negative tendency

Extension and contraction of demand

Rise and fall of demand

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

Under certain conditions, slope of demand curve is

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Negative

Positive

Zero

Fixed

The demand curve slopes

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upwards

Horizontal

vertical

downward to the right

Price determined with the equilibrium of demand and supply on some day

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Short period price

Long period price

Market price

Normal price

Demand for a commodity means

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Desire to purchase

Power to purchase

Price of commodity

All the three

Relationship between price and quantity demanded is called

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Demand schedule

Demand curve

Law of demand

Assumptions of law of demand

Relationship between price of a commodity and demand for it exists

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Positive

Inverse

Indirect

None of these

According to law of demand, when price of a commodity decreases, then demand curve

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Moves from left to right upward

Moves from left to right downward

Moves vertically

Moves horizontally

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

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

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