| 1 |
Normally a demand curve will have the shape |
- A. horizontal
- B. vertical
- C. downward sloping
- D. upward sloping
|
| 2 |
If price elasticity of demand is very low, the commodity is |
- A. necessity
- B. luxury
- C. substitute
- D. not available
|
| 3 |
If price and total revenue move in the same direction, then demand is |
- A. inelastic
- B. elastic
- C. unrelated
- D. perfectly elastic
|
| 4 |
Price and demand are positively correlated in case of |
- A. necessities
- B. comforts
- C. Giffen goods
- D. Luxuries
|
| 5 |
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
|
| 6 |
When the price of a product falls and as a concequence the demand for the product increase. it will be. |
- A. Rise of demands
- B. Fall of demand
- C. Extension of demand
- D. Contraction on demand
|
| 7 |
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
|
| 8 |
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
|
| 9 |
If quantity demanded is completely unresponsive to changes in price, demand is |
- A. inelastic
- B. unit elastic
- C. elastic
- D. perfectly inelastic
|
| 10 |
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
|
