Question # 1

According to the law of supply, there is relation in price and supply

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Inverse

Increasing

Negative

indirect

When supply curve shifts leftwards or up, it is called

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Rise of supply

Fall of supply

Extension of supply

Contraction of supply

The rate of change in Qd due to change in price is called:

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Rise in demand

Income Elasticity of demand

Price Elasticity of demand

Cross Elasticity of demand

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

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Price elasticity

Income elasticity

Cross elasticity

Point elasticity

Unity method to measure elasticity of supply is presented by

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Adam Smith

Robbins

Marshall

Faruson

Income elasticity of demand is concerned with

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Income and consumption of wealth

Income and demand for good

Price and income of the consumer

Price and demand for good

If demand changes by more than 10% due to 10% change in price, then elasticity of demand is called

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Equal to unity

More than unity

Less than unity

Infinite

If demand and supply both fall in the same proportion

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity increases

Quickly destroyable goods are called

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Superior goods

Inferior goods

Perishable goods

Giffen godds

The demand curve slopes

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upwards

Horizontal

vertical

downward to the right

Supply of goods depends on

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price

income

income and price

utility

Price of perishable goods is determined

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In the market period

In the short period

In the middle period

In the long period

Quantity supplied of a commodity extends because

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Population changes

Change occurs in assumtions of law of supply

Income of the entrepreneur increases

Price of the commodity increases

Due to fall in demand, curve shifts to

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Right

Left

Both sides

None of these

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

Which one is increasing function of price

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Demand

Supply

Utility

Consumption

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

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