Question # 1

Degree of change in quantity supplied due to change in price is called

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Extension of supply

Rise of supply

Elasticity of supply

None of three

If demand falls more proportionately then that of supply then

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity increases

At equilibrium price, demand and supply

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Increase

Become equal

Decrease

are different

What is meant by demand for a commodity in economics

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To desire for a commodity

To have power to buy

To have power to buy a commodity with desire

Quantity of a commodity

In case of fall in demand, demand curve shifts:

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Left side

Right side

Downward

Both (a) and (c)

Unity method to measure elasticity of supply is presented by

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Adam Smith

Robbins

Marshall

Faruson

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 the percentage change in supply is more than the percentage change in price, then elasticity of supply is called

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Equal to unity

Less than unity

More than unity

Infinite

Quickly destroyable goods are called

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Superior goods

Inferior goods

Perishable goods

Giffen godds

Flux method is also known as:

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Percentage method

Unitary method

Total expenditure method

All of them

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

Finance minister imposes tax on the goods having more elastic demand

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At low rate

At high rate

At the same rate

At zero rate

Supply of goods depends upon

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Price

Income

Price and income

Utility

Which one is increasing function of price

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Demand

Supply

Utility

Consumption

Price and demand has a relationship:

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Negative

Positive

Functional

Both a & c

If demand for commodity X changes due to the change in price of commodity, it is called

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Cross elasticity

Price elasticity

Income elasticity

Arc elasticity

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

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