| 1 |
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
|
| 2 |
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
|
| 3 |
Market demand curve is a summation of all individual demand curves as |
- A. Vertical
- B. horizontal
- C. mathematical
- D. local
|
| 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
|
| 5 |
Which of the following is a demand function? |
- A. Q + 4P = 20
- B. Q = 35 + 3P
- C. Q - 2P - 15 =0
- D. 5P - Q = 4
|
| 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 |
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
|
| 8 |
The demand of a good falls when. |
- A. Its price falls
- B. Price of the substitute changes
- C. its price rises
- D. It price remain constant
|
| 9 |
Normally a demand curve will have the shape |
- A. horizontal
- B. vertical
- C. downward sloping
- D. upward sloping
|
| 10 |
The elasticity of demand of durable goods is |
- A. less than unity
- B. greater than unity
- C. equal to unity
- D. zero
|
