| 1 |
The price of a product double due to which its quantity demand falls to one half. The elasticity of demand for product will be: |
- A. Equal to unity
- B. Lass than unity
- C. Greater than unity
- D. Equal to zero
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| 2 |
What best explains a shift in market supply curve to the right? |
- A. an advertising campaign is successful in promoting the good
- B. a new technique makes it cheaper to produce the good
- C. the government introduces a tax on the good
- D. the price of raw materials increases
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| 3 |
Products A and B are substitutes whereas A and C are complement. With a rise in the price of product A, quantity demand of: |
- A. Product B will go up
- B. Product will fall
- C. Both the above will take place
- D. Nothing will take place
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| 4 |
Which one is increasing function of price |
- A. demand
- B. utility
- C. supply
- D. consumption
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| 5 |
Which one of the following pairs represent complementary demand for a product. |
- A. Tea & coffe
- B. Butter & Margarine
- C. Shirt & shoes
- D. Shirt & trouser
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| 6 |
Supply curve |
- A. is vertical in long run
- B. is flatter in long run
- C. is same in long and short run
- D. is horizontal in both short and long run
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| 7 |
Supply curve will shift when |
- A. price falls
- B. price rises
- C. demand shifts
- D. technology changes
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| 8 |
If elasticity of supply is one, supply curve will be |
- A. horizontal
- B. vertical
- C. passing through origin
- D. touching x-axis
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| 9 |
Elasticity of a demand for product will be greater then unity if, with a fall in its price, total expenditure of consumer. |
- A. Increase
- B. Falls
- C. Remains the same
- D. None of the three
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| 10 |
Elasticity of demand in case of minor change in price and quantity demand will be . |
- A. Income elasticity of demand
- B. Cross elasticity of demand
- C. Point elasticity of demand
- D. Arc elasticity of demand
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