1 |
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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2 |
In case of perfectly elastic demand curve, the demand curve will be parallel to the : |
- A. Horizontal axis
- B. Vertical Axis
- C. None of the above
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3 |
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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4 |
If the price of a product increase from Rs. 12 per unit and as a consequence quantity demand of the product falls from 100 units to 50 units . The price elasticity of the product will be. |
- A. 2.5
- B. 0.5
- C. 1.5
- D. 3.5
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5 |
If a change in demand is brought by a change in income, of demand will be. |
- A. Income elasticity
- B. Price elasticity
- C. Cross elasticity
- D. Arcelasticity
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6 |
The elasticity f demand in case of substitute is called. |
- A. Income elasticity of demand
- B. Priceelasticity of demand
- C. Crosselasticity of demand
- D. None of the three
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7 |
It describes the law of supply |
- A. supply curve
- B. supply schedule
- C. supply equation
- D. all the three
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8 |
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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9 |
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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10 |
The demand for a product is inelastic. In order to increase government revenue, the finance minister will : |
- A. Lower down the tax rate
- B. Increase the tax rate
- C. Not change the tax rate
- D. Double the tax rate
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