| 1 |
If same amount of good is supplied at higher price, it is called |
- A. Expansion of supply
- B. Contraction of supply
- C. Fall in supply
- D. Rise in supply
|
| 2 |
Relationship between price of a commodity and demand for it exists |
- A. Positive
- B. Inverse
- C. Indirect
- D. None of these
|
| 3 |
Equilibrium means |
- A. the condition that is not possible
- B. an unstable condition
- C. a condition that can change
- D. stable position
|
| 4 |
If price of a commodity remains constant but its supply decreases or price increases but supply remains constant, it is called |
- A. Rise of supply
- B. Extension of supply
- C. Fall of supply
- D. Contraction of supply
|
| 5 |
When there is a very small change in demand and price of a commodity, it is called |
- A. Point elasticity
- B. Arc elasticity
- C. Cross elasticity
- D. Income elasticity
|
| 6 |
If supply does not change despite a change in price, then elasticity of supply is called |
- A. Equal to unity
- B. Less than unity
- C. More than unity
- D. Zero
|
| 7 |
If supply is fixed then due to fall of demand |
- A. Equilibrium price decreases
- B. Equilibrium quantity increases
- C. Equilibrium price increases
- D. Equilibrium price does not change
|
| 8 |
Regarding time element, the normal price has types |
- A. One
- B. Two
- C. Three
- D. Four
|
| 9 |
If demand curve is parallel to x-axis, then elasticity of demand is |
- A. Infinite
- B. Zero
- C. Equal to unity
- D. More than unity
|
| 10 |
The cause of extension and contraction of demand is |
- A. Income
- B. Price
- C. Population
- D. Technology
|
