| 1 |
Law of demand shows relation between |
- A. income and price of commodity
- B. price and quantity of a commodity
- C. income and quantity demanded
- D. quantity demanded and quantity supplied
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| 2 |
If quantity demanded is completely unresponsive to changes in price, demand is |
- A. inelastic
- B. unit elastic
- C. elastic
- D. perfectly inelastic
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| 3 |
If demand is unitary elastic, a 25% increase in price will result in |
- A. 25% change in total revenue
- B. no change in quantity demanded
- C. 1% decrease in quantity demanded
- D. 25% decrease in quantity demanded
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| 4 |
Which one is the assumption of law of demand? |
- A. price of the commodity should not change
- B. quantity demand should not change
- C. income of the consumer should not change
- D. none of the above
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| 5 |
The demand curve slopes downward from left to right because of: |
- A. Income effect
- B. Substitution effect
- C. Entry of new buyers
- D. All of the above
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| 6 |
Wit rapid economic growth in a country the individual demand curve will: |
- A. Rise
- B. Fall
- C. Extend
- D. Contract
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| 7 |
One of the following will not cause a rise and fall on demand. |
- A. Change in income
- B. Change in weather
- C. Discovery of a substitute
- D. Distribution of income remaining the same
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| 8 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
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| 9 |
When cross elasticity of demand for A and B is positive number, one can conclude that |
- A. the goods are cheaper
- B. the goods are inferior
- C. the goods are substitutes
- D. the goods are complements
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| 10 |
<div>Which one can cause a change in demand</div> |
- A. change in income
- B. change in supply
- C. change in tastes
- D. a and c of above
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