Question # 1

Elasticity of demand for the commodities which have substitutes, is

Choose an answer

More elastic

Less elastic

Infinite

Zero

A slight change in demand and price is called:

Choose an answer

Point Elasticity of demand

ArcElasticity of demand

CrossElasticity of demand

PriceElasticity of demand

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

Choose an answer

Will increase its price

Will decrease its price

Will not change its price

None of these

If the ratio of change in demand is equal to the ratio of change in price, elasticity of demand will be

Choose an answer

More than unity

Less than unity

Equal to unity

Infinite

If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is:

Choose an answer

Equal to zero

Equal to one

Smaller than one

Greater than one

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

Choose an answer

Price elasticity

Income elasticity

Cross elasticity

Point elasticity

If demand does not change, despite a fall in price, is called

Choose an answer

Fall of demand

Rise of demand

Contraction of demand

Extension of demand

Elasticity of supply if perishable goods is

Choose an answer

Equal to unity

More than unity

Less than unity

Zero

Flux method is also known as:

Choose an answer

Percentage method

Unitary method

Total expenditure method

All of them

Usually market price is ____________ normal price

Choose an answer

Equal to

Less than

More than

None of these

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

Choose an answer

Short period price

Long period price

Market price

Normal price

Under certain conditions, slope of demand curve is

Choose an answer

Negative

Positive

Zero

Fixed

When supply changes due to other factors besides price, it is called

Choose an answer

Rise of supply

Fall of supply

Rise and fall of supply

Extension and contraction of supply

Market equilibrium is attained when there exists in the market

Choose an answer

Perfect competition

Imperfect competition

Monopoly

Large quantity of commodity comes in the market

When demand and supply rise equally then equilibrium price

Choose an answer

isles

is more

Remains the source

Zero

If quantity demanded for a commodity changes due to the change in income, it is called

Choose an answer

Price elasticity

Point elasticity

Cross elasticity

Income elasticity

More Classes

Other Links

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer