Question # 1

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

Desire + Purchasing power is equal to:

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Demand

Supply

Income

Utility

The equilibrium of the market is that demand and supply to each other are

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opposite

positive

equal

negative

The goods which can be used in place of each other, are called

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Complimentary goods

Substitute goods

Alternative goods

Jointly demanded goods

The supply curve of Fish is

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More elastic

Less elastic

Inelastic

Infinite elastic

If supply does not change, then due to rise of demand

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity decreases

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

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Point elasticity

Arc elasticity

Cross elasticity

Income elasticity

If supply does not change, then due to fall of demand

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Equilibrium price decreases

Equilibrium price increases

Equilibrium price does not change

Equilibrium quantity increases

Elasticity of supply if perishable goods is

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Equal to unity

More than unity

Less than unity

Zero

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

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Equal to zero

Equal to one

Smaller than one

Greater than one

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

When supply curve shifts rightward or down it is called

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Rise of supply

Fall of supply

Extension of supply

Contraction of supply

Which one is increasing function of price

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Demand

Supply

Utility

Consumption

Supply of durable goods is

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Elastic

Perfectly elastic

Perfectly inelastic

Less elastic

Cause of shifting of demand curve is

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Change in price

Desire

Other factors

Exceptions

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

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