| 1 |
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
|
| 2 |
When the demand of a product rises due to factors except price it will be. |
- A. Extension of demands
- B. Rise of demand
- C. Contraction of demand
- D. Extension of demand
|
| 3 |
The elasticity of demand of durable goods is |
- A. less than unity
- B. greater than unity
- C. equal to unity
- D. zero
|
| 4 |
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
|
| 5 |
This is an assumption of law of demand |
- A. price of the commodity does not change
- B. quantity should not change
- C. supply should not change
- D. income of consumer should not change
|
| 6 |
The demand of a commodity having many substitutes is |
- A. more elastic
- B. less elastic
- C. zero elastic
- D. infinite elastic
|
| 7 |
The law of demand will not be apply in case of |
- A. Inferior goods
- B. Superior goods
- C. Normal goods
- D. Non of them
|
| 8 |
Irrespecitve of price, Somia always spends Rs. 100 a week on ice cream, we conculde that |
- A. elasticity of demand is 0
- B. elasticity of demand is 1
- C. elasticity of demand id infinite
- D. law of demand has been violated
|
| 9 |
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is |
- A. 10%
- B. 30%
- C. 3
- D. 1/3
|
| 10 |
When price elasticity of demand for normal goods in calculated, the value is always |
- A. positive
- B. negative
- C. constant
- D. greater than one
|
