Question # 1

If total expenditure of the consumer increases due to decrease in price, then nature of elasticity of demand will be

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Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

The quantity of commodity which exists in warehouse (stock) of the seller is called

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Supply

Demand

Stock

All of these

Flux method is also known as:

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Percentage method

Unitary method

Total expenditure method

All of them

In which direction demand and supply curves move

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Same

Opposite

parallel

Horizontal

Which combination of the following is of joint demand

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Tea and coffee

Petrol and car

Meat and grocery

Inkpot and book

The goods on which law of demand does not apply, are called

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Services

Goods and services

Giffin goods

Capital goods

The goods which are jointly demanded to satisfy a want, are called

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Complimentary goods

Substitute goods

Alternative goods

inferior goods

Elasticity of supply is the name of

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Change in price

Change in income

Feature of change in supply

Change in price and income

The goods which are jointly demanded are called:

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Substitute goods

Complimentary goods

Alternative goods

None of these

Quantity supplied of a commodity extends because

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Population changes

Change occurs in assumtions of law of supply

Income of the entrepreneur increases

Price of the commodity increases

Unitary method for Elasticity of demand was presented by:

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Marshall

Keynes

Robbins

Adam smith

If the demand for a commodity is less elastic, then an entrepreneur in order to increase his profit

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Will increase its price

Will decrease its price

Will not change its price

None of these

A textile mill produces 2000 meters cloth. Entrepreneur offers 1500 meters cloth to sell at price Rs 100 per meter and 500 meters cloth keeps with him. Cloth kept by the entrepreneur is called

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Total production

Supply

Stock

Surplus production

In case of rise in demand, demand curve shifts:

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Right side

Downward

Upward

(a) and (c)

If supply does not change despite a change in price, then elasticity of supply is called

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Equal to unity

Less than unity

More than unity

Zero

When demand and supply rise equally then equilibrium price

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isles

is more

Remains the source

Zero

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Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers

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