Question # 1

The quantity of commodity which exists in warehouse (stock) of the seller is called

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Supply

Demand

Stock

All of these

When there is big change in demand and price of a commodity, it is called

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Point elasticity

Arc elasticity

Cross elasticity

Income elasticity

The duty of a market is not to

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make exchange of goods

contact buyers and sellers

determine price

give maximum output

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

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Zero

Infinite

Positive

Negative

If demand changes by more than 10% due to 10% change in price, then elasticity of demand is called

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Equal to unity

More than unity

Less than unity

Infinite

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

In case of rise in demand, demand curve shifts:

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Right side

Downward

Upward

(a) and (c)

Relationship between price and quantity demanded is called

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Demand schedule

Demand curve

Law of demand

Assumptions of law of demand

Supply of goods depends on

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price

income

income and price

utility

Kinds of supply according to period of time are

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Two

Three

Four

Five

In which direction demand and supply curves move

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Same

Opposite

parallel

Horizontal

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

Under certain conditions, slope of demand curve is

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Negative

Positive

Zero

Fixed

Who does determine the reserve price

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Buyer

Seller

Government

District adminitration

When there are small and minor changes in price and demand then

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Price elasticity

Income elasticity

Cross elasticity

Point elasticity

If the ratio of change in demand is equal to the ratio of change in price, elasticity of demand will be

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More than unity

Less than unity

Equal to unity

Infinite

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

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