| 1 |
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
|
| 2 |
<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
|
| 3 |
Income elasticity of demand for normal good is always |
- A. 1
- B. more than one
- C. negative
- D. positive
|
| 4 |
If price elasticity of demand is very low, the commodity is |
- A. necessity
- B. luxury
- C. substitute
- D. not available
|
| 5 |
Other things equal, if a good has more substitutes, its price elasticty of demand is |
- A. larger
- B. smaller
- C. zero
- D. unity
|
| 6 |
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
|
| 7 |
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
|
| 8 |
The following are causes of shift in demand EXCEPT the one |
- A. change in income
- B. change in price
- C. change in fashion
- D. change in prices of substitutes
|
| 9 |
Normally a demand curve will have the shape |
- A. horizontal
- B. vertical
- C. downward sloping
- D. upward sloping
|
| 10 |
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
|
