| 1 |
To say that two goods are unrelated, their cross price elasticity of demand should be |
- A. less than 0
- B. greater than 0
- C. equal to 0
- D. 1
|
| 2 |
Mr. Suleri bought 50 litters of petrol when his monthly income was Rs. 25000. Now his monthly income has risen to Rs. 50000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is |
- A. 1
- B. 100%
- C. less than one
- D. more than one
|
| 3 |
Income elasticity of demand for normal good is always |
- A. 1
- B. more than one
- C. negative
- D. positive
|
| 4 |
<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
|
| 5 |
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
|
| 6 |
Market demand curve is a summation of all individual demand curves as |
- A. Vertical
- B. horizontal
- C. mathematical
- D. local
|
| 7 |
Which one is not determinant of demand |
- A. tastes
- B. income
- C. method of production
- D. price
|
| 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
|
| 9 |
One of the following will not cause a rise and fall on demand. |
- A. Change in income
- B. Change in weather
- C. Discovery of a substitute
- D. Distribution of income remaining the same
|
| 10 |
If quantity demanded is completely unresponsive to changes in price, demand is |
- A. inelastic
- B. unit elastic
- C. elastic
- D. perfectly inelastic
|
