| 1 |
A decrease in demand causes the equilibrium price to |
- A. rise
- B. fall
- C. remain constant
- D. indeterminate
|
| 2 |
If price is set above equilibrium level, there will be |
- A. surplus commodity in the market
- B. shortage of commodity in the market
- C. supply curve will shift
- D. demand curve will shift
|
| 3 |
One of the following is not an assumption of law of supply. |
- A. Political system should not changed
- B. Cost of production should not changed
- C. Production technique should not changed
- D. Cost of raw material should not changed
|
| 4 |
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
|
| 5 |
A fall fall in supply will take place due to a: |
- A. Business collusion
- B. Bumper crop
- C. Fall in custom duty
- D. Fall in income
|
| 6 |
When price is fixed below equilibrium level, there will be |
- A. surplus commodity in the market
- B. shortage of commodity in the market
- C. supply curve will shift
- D. demand curve will shift
|
| 7 |
The price and sales of sugar both increase. What could be the cause of this? |
- A. a decrease in the income of the consumers.
- B. a decrease in the tax on sugar
- C. An increase in the wages of workers in the sugar industry
- D. An increase in the price of sugar substitutes
|
| 8 |
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
|
| 9 |
Markets where firms supply goods and services demanded by households are |
- A. factor market
- B. product market
- C. open markets
- D. resource markets
|
| 10 |
Which one will be termed as supply of a product. |
- A. One tone potato in cold storage
- B. One ton rice offered for sale in market
- C. One ton rice brought for sale in market at a certain price.
- D. None of the three
|
