| 1 |
<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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| 2 |
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
|
| 3 |
Haris has a special taste for chicken rolls of college canteen. The owner of the canteen doubles the price of chicken roll. Haris did not respond to the increase in prices and kept on demanding the same quantity of chicken roll. His demand for chicken roll is |
- A. perfectly elastic
- B. perfectly inelastic
- C. elastic
- D. less elastic
|
| 4 |
Normally a demand curve will have the shape |
- A. horizontal
- B. vertical
- C. downward sloping
- D. upward sloping
|
| 5 |
When demand is perfectly inelastic, an increase in price will result in |
- A. decrease in total revenue
- B. increase in total revenue
- C. no change in total revenue
- D. decrease in quantity demanded
|
| 6 |
When price elasticity of demand for normal goods in calculated, the value is always |
- A. positive
- B. negative
- C. constant
- D. greater than one
|
| 7 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
|
| 8 |
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
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| 9 |
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
|
| 10 |
Price and demand are positively correlated in case of |
- A. necessities
- B. comforts
- C. Giffen goods
- D. Luxuries
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