1 |
Cross elasticity of Suzuki and Honda cars will be |
- A. Positive
- B. negative
- C. zero
- D. infinite
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2 |
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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3 |
The elasticity of demand of durable goods is |
- A. less than unity
- B. greater than unity
- C. equal to unity
- D. zero
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4 |
This is the assumption of law of demand |
- A. price of the commodity should not change
- B. Quantity demanded should not change
- C. Price of substitutes should not change
- D. Demand curve must be linear
|
5 |
If demand has unit price elasticity, a change in price causes |
- A. increase in total revenue
- B. decrease in total revenue
- C. no change in total revenue
- D. indeterminate
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6 |
Other things equal, if a good has more substitutes, its price elasticty of demand is |
- A. larger
- B. smaller
- C. zero
- D. unity
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7 |
If price and total revenue move in the same direction, then demand is |
- A. inelastic
- B. elastic
- C. unrelated
- D. perfectly elastic
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8 |
If elasticity of demand is very low it shows that the commodity is |
- A. a necessity
- B. a luxury
- C. has little importance in total budget
- D. a and c above
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9 |
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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10 |
One of the following is not an exception the law of demand. |
- A. Very high price products
- B. Very low price products
- C. Ignorance of consumers
- D. Non of the above
|