| 1 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
|
| 2 |
The demand curve slopes downward from left to right because of: |
- A. Income effect
- B. Substitution effect
- C. Entry of new buyers
- D. All of the above
|
| 3 |
The following are causes of shift in demand EXCEPT the one |
- A. change in income
- B. change in price
- C. change in fashion
- D. change in prices of substitutes
|
| 4 |
Which one is not determinant of demand |
- A. tastes
- B. income
- C. method of production
- D. price
|
| 5 |
Price elastic of demand measures |
- A. change in price caused by changes in demand
- B. the rate of change of sales
- C. the responsiveness of demand to price changes
- D. the value of sales at a given price
|
| 6 |
The law of demand will not be apply in case of |
- A. Inferior goods
- B. Superior goods
- C. Normal goods
- D. Non of them
|
| 7 |
Wit rapid economic growth in a country the individual demand curve will: |
- A. Rise
- B. Fall
- C. Extend
- D. Contract
|
| 8 |
The law demand will not be valid in case of. |
- A. Very high price products
- B. Normal goods
- C. Price effect
- D. Income effects
|
| 9 |
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is |
- A. 10%
- B. 30%
- C. 3
- D. 1/3
|
| 10 |
Other things equal, if a good has more substitutes, its price elasticty of demand is |
- A. larger
- B. smaller
- C. zero
- D. unity
|
