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 |
When the demand of a product rises due to factors except price it will be. |
- A. Extension of demands
- B. Rise of demand
- C. Contraction of demand
- D. Extension of demand
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3 |
When price elasticity of demand for normal goods in calculated, the value is always |
- A. positive
- B. negative
- C. constant
- D. greater than one
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4 |
Law of demand shows relation between |
- A. income and price of commodity
- B. price and quantity of a commodity
- C. income and quantity demanded
- D. quantity demanded and quantity supplied
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5 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
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6 |
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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7 |
Cross elasticity of Suzuki and Honda cars will be |
- A. Positive
- B. negative
- C. zero
- D. infinite
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8 |
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
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9 |
When cross elasticity of demand for A and B is positive number, one can conclude that |
- A. the goods are cheaper
- B. the goods are inferior
- C. the goods are substitutes
- D. the goods are complements
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10 |
This is an assumption of law of demand |
- A. price of the commodity does not change
- B. quantity should not change
- C. supply should not change
- D. income of consumer should not change
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