| 1 |
The demand of a will expand when: |
- A. Other things do not remain constant.
- B. Price of the products changes.
- C. Value of money falls.
- D. None of the three
|
| 2 |
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
|
| 3 |
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
|
| 4 |
A seller can increase his sales revenue by charging a lower price, if the demand has |
- A. e < 1
- B. e = 1
- C. e > 1
- D. e = 0
|
| 5 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
|
| 6 |
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
|
| 7 |
Which one is not determinant of demand |
- A. tastes
- B. income
- C. method of production
- D. price
|
| 8 |
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
|
| 9 |
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
|
| 10 |
The elasticity of demand of durable goods is |
- A. less than unity
- B. greater than unity
- C. equal to unity
- D. zero
|
