Question # 1

Quantity of a commodity which the consumers are ready to purchase at a particular price, is called

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Demand

Supply

Stock

Demand and supply

If supply does not change despite a change in price, then elasticity of supply is called

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Equal to unity

Less than unity

More than unity

Zero

If same amount of good is supplied at higher price, it is called

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Expansion of supply

Contraction of supply

Fall in supply

Rise in supply

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

If demand did not influence by the charge in price, that is called:

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Elasticity of demand = 1

Elasticity of demand < 1

Elasticity of demand > 1

Elasticity of demand = 0

If supply of a commodity changes by more than 10% due to 10% change in its price, then elasticity of supply will be

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Equal to unity

More than unity

Less than unity

Infinite

Demand for Giffen goods is:

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Negative

Vertical

Positive

All of them

Supply of goods depends on

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price

income

income and price

utility

Supply curve shifts due to better technique of production

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Rightward

Leftward

Does not change

Vertical

If demand decreases by 10% due to 10% increase in Price, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

Supply curve moves from left to right upward, this tendency is called

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Negative

Positive

Horizontal

Vertical

Cause of shifting of demand curve is

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Change in price

Desire

Other factors

Exceptions

Who did present formula to measure Arc elasticity of demand

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Adam Smith

Marshall

Allen

Keynes

If demand curve is parallel to x-axis, then elasticity of demand is

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Infinite

Zero

Equal to unity

More than unity

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

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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