Question # 1

Finance minister in order to increase the public revenue imposes the tax on the commodities whose demand is more elastic

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At low rate

At high rate

Some times decreases the rate and some times increases

Does not change Tax rate

If demand does not change, despite a fall in price, is called

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Fall of demand

Rise of demand

Contraction of demand

Extension of demand

Demand for a commodity means

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Desire to purchase

Power to purchase

Price of commodity

All the three

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

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Zero

Infinite

Positive

Negative

When demand increases due to change in other factors it is known as:

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Contraction in demand

Expansion and contraction in demand

Expansion in demand

Rise in demand

Quickly destroyable goods are called

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Superior goods

Inferior goods

Perishable goods

Giffen godds

The price at which quantity demanded and supplied are equal

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Equilibrium price

Reserve price

Fixed price

Variable price

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

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Negative

Positive

Horizontal

Vertical

In case of perfectly elastic supply or infinite elasticity of supply, supply curve is

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Horizontal (parallel to x-axis)

Vertical (parallel to y-axis)

Positive sloped

Negative sloped

In case of rise in demand, demand curve shifts:

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Right side

Downward

Upward

(a) and (c)

Supply of goods depends upon

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Price

Income

Price and income

Utility

Demand for necessities of life is

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Les elastic

More elastic

Perfectly elastic

Perfectly inelastic

If due to a very slight decrease in price, demand goes on increasing, elasticity of demand will be

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More than unity

Less than unity

Infinite

Zero

If supply of a commodity changes by 10% due to 10% change in its price, then elasticity of supply will be

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Equal to unity

More than unity

Less than unity

Zero

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

Equilibrium means

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the condition that is not possible

an unstable condition

a condition that can change

stable position

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