Question # 1

If price of a commodity remains constant but its supply decreases or price increases but supply remains constant, it is called

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Rise of supply

Extension of supply

Fall of supply

Contraction of supply

Quantity of a commodity which a person is ready to purchase at a particular price, is called

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Individual demand

Market demand

Supply

Market Supply

When price decreases, supply

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Extends

Contracts

Becomes zero

Remains fixed

If supply rises more proportionately than that of demand, then

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity decreases

Elasticity of demand for luxuries is

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Equal to unity

More than unity

Less than unity

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

If quantity demand changes due to the change in income, it is called:

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Point Elasticity of demand

Arc Elasticity of demand

Income Elasticity of demand

Price Elasticity of demand

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

Supply of goods depends on

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price

income

income and price

utility

When price of a commodity decreases but its demand does not change, this situation is called

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Constant demand

Fall of demand

Rise of demand

Extension of demand

Equilibrium means

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the condition that is not possible

an unstable condition

a condition that can change

stable position

Measurement of arc elasticity of demand was present:

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Keynes

Marshall

Adam smith

R.G.D Allen

Demand for good like Television and VCR is

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Less elastic

More elastic

Perfectly inelastic

Infinitely elastic

Regarding time element, the normal price has types

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One

Two

Three

Four

Non elastic demand curve is

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positive

negative

vertical

horizontal

When demand increases due to change in other factors it is known as:

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Contraction in demand

Expansion and contraction in demand

Expansion in demand

Rise in demand

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

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