| 1 |
Price and demand are positively correlated in case of |
- A. necessities
- B. comforts
- C. Giffen goods
- D. Luxuries
|
| 2 |
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
|
| 3 |
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
|
| 4 |
Income elasticity of demand for normal good is always |
- A. 1
- B. more than one
- C. negative
- D. positive
|
| 5 |
If price elasticity of demand is very low, the commodity is |
- A. necessity
- B. luxury
- C. substitute
- D. not available
|
| 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 |
The demand of a commodity having many substitutes is |
- A. more elastic
- B. less elastic
- C. zero elastic
- D. infinite elastic
|
| 8 |
Which one is not determinant of demand |
- A. tastes
- B. income
- C. method of production
- D. price
|
| 9 |
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
|
| 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
|
