Question # 1

In case of fall in demand, demand curve shifts:

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Left side

Right side

Downward

Both (a) and (c)

If demand changes by more than 10% due to 10% change in price, then elasticity of demand is called

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Equal to unity

More than unity

Less than unity

Infinite

Flux method is also known as:

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Percentage method

Unitary method

Total expenditure method

All of them

Elasticity of demand for durable goods is

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More elastic

Less elastic

Infinte

Zero

Relationship between price of a commodity and demand for it exists

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Positive

Inverse

Indirect

None of these

If supply increase due to increase in price, it is called

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Extension of supply

Contraction of supply

Rise of supply

Fall of supply

Rise of supply can be shown with the help of

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A supply curve

More than one supply curves

Fixed supply curve

Vertical supply curve

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

Price determined with the equilibrium of demand and supply on some day

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Short period price

Long period price

Market price

Normal price

Supply of perishable goods e.g. groceries, fruit, meat etc is

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Less elastic

More elastic

Perfectly inelastic

Perfectly elastic

Usually market price is ____________ normal price

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Equal to

Less than

More than

None of these

Demand for the goods which have different uses, is

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More elastic

Less elastic

Infinity

Zero elastic

When there is a very small change in demand and price of a commodity, it is called

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Point elasticity

Arc elasticity

Cross elasticity

Income elasticity

In order to satisfy some wants, more than one commodities are needed. Demand for such commodities is called

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Joint demand

Composite demand

Derived demand

Direct demand

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

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Supply

Demand

Stock

All of these

When there are small and minor changes in price and demand then

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Price elasticity

Income elasticity

Cross elasticity

Point elasticity

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

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