| 1 |
Demands and supply curves cross at |
- A. always at 60 degree
- B. at 90 degree
- C. at equal angle
- D. at any angle
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| 2 |
When demand is perfectly elastic, an increase in supply will result in |
- A. decrease in quantity sold
- B. increase in quantity sold
- C. fall in price
- D. b and c above
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| 3 |
If we know that quantities bought and sold are equal, we can conclude that |
- A. quantities demanded and supplied are also equal
- B. the market is in equilibrium
- C. there will be no tendency for a price change
- D. all of the above
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| 4 |
When there is big change in quantity supplied resulting from a minor change inits price,its elasticity of supply will be. |
- A. Equal to unity
- B. Less than unity
- C. Equal to zero
- D. Greater than unity
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| 5 |
A producers has one thousand tons of rice to be offered for sale at a certain price in future, it will be called. |
- A. Supply of output
- B. Production
- C. Buffer stock
- D. Stock
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| 6 |
Market equilibrium means a situation where |
- A. Q<sub>s</sub>= Q<sub>d</sub>
- B. Q<sub>s</sub>= Q<sub>p</sub>
- C. Q<sub>d</sub>= Q<sub>p</sub>
- D. Q<sub>q</sub>= Q<sub>p</sub>
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| 7 |
In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then |
- A. price will fall
- B. price remains same
- C. price will rise
- D. quantity rises
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| 8 |
A change in price brings in quantity supplied. it will be. |
- A. Rise in supply
- B. Contraction of supply
- C. Fall in supply
- D. Extension of supply
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| 9 |
Demand and supply forces determine market price |
- A. only in perfect competition
- B. only in monopoly market
- C. in both markets
- D. none of the above
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| 10 |
A rise in supply and demand in equal proportion will result in |
- A. increase in equilibrium price and decrease in equilibrium quantity
- B. decreases in equilibrium price and increases in equilibrium quantity
- C. no change in equilibrium price and increases in equilibrium quantity
- D. increases in equilibrium price and no change in equilibrium quantity
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