1 |
If price and total revenue move in the same direction, then demand is |
- A. inelastic
- B. elastic
- C. unrelated
- D. perfectly elastic
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2 |
Other things equal, if a good has more substitutes, its price elasticty of demand is |
- A. larger
- B. smaller
- C. zero
- D. unity
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3 |
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
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4 |
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
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5 |
If price elasticity of demand is very low, the commodity is |
- A. necessity
- B. luxury
- C. substitute
- D. not available
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6 |
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
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7 |
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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8 |
Demand is a function of |
- A. price
- B. quantity
- C. supply
- D. none
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9 |
<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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10 |
If demand is inelastic, a change in the price |
- A. will change the quantity in same direction
- B. will change total revenue in same direction
- C. will change total revenue in the opposite direction
- D. will not change quantity
|