Question # 1

If supply curve is vertical (parallel to y-axis), then elasticity of supply is

Choose an answer

Zero

Infinite

Equal to unity

More than unity

If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is:

Choose an answer

Equal to zero

Equal to one

Smaller than one

Greater than one

In case of fall in demand, demand curve shifts:

Choose an answer

Left side

Right side

Downward

Both (a) and (c)

When price of a commodity decreases but its demand does not change, this situation is called

Choose an answer

Constant demand

Fall of demand

Rise of demand

Extension of demand

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

Choose an answer

Equal to unity

More than unity

Less than unity

Zero

The demand curve slopes

Choose an answer

upwards

Horizontal

vertical

downward to the right

A big change in demand and price is called:

Choose an answer

PointElasticity of demand

ArcElasticity of demand

CrossElasticity of demand

PriceElasticity of demand

In which direction demand and supply curves move

Choose an answer

Same

Opposite

parallel

Horizontal

That particular price below which price the seller is not ready to sell his commodity, is called

Choose an answer

Market price

Normal price

Reserve price

All the three

Which one is not condition of perfect competition

Choose an answer

Homogeneity of good

Difference in price of good

Large number of buyers and sellers

Perfect knowledge of market

Cause of shifting of supply curve is

Choose an answer

Change in price

Other factors

Change in tax

Change in income

Elasticity of demand for durable goods is

Choose an answer

More elastic

Less elastic

Infinte

Zero

Reserve price of a commodity is that price

Choose an answer

Which is more than the cost of production of the seller

At which the seller sells his commodity tn the market

Which is equal to the cost of production of the seller

Below which the seller is not ready to sell his commodity

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

Choose an answer

Demand

Supply

Stock

Demand and supply

If supply of a commodity is fixed, it is called

Choose an answer

Market supply

Short period supply

Long period supply

Middle period supply

Under certain conditions, slope of demand curve is

Choose an answer

Negative

Positive

Zero

Fixed

More Classes

Other Links

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer