| 1 |
Law of demand shows relation between |
- A. income and price of commodity
- B. price and quantity of a commodity
- C. income and quantity demanded
- D. quantity demanded and quantity supplied
|
| 2 |
Haris has a special taste for chicken rolls of college canteen. The owner of the canteen doubles the price of chicken roll. Haris did not respond to the increase in prices and kept on demanding the same quantity of chicken roll. His demand for chicken roll is |
- A. perfectly elastic
- B. perfectly inelastic
- C. elastic
- D. less elastic
|
| 3 |
To say that two goods are unrelated, their cross price elasticity of demand should be |
- A. less than 0
- B. greater than 0
- C. equal to 0
- D. 1
|
| 4 |
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
|
| 5 |
One of the following will not cause a rise and fall on demand. |
- A. Change in income
- B. Change in weather
- C. Discovery of a substitute
- D. Distribution of income remaining the same
|
| 6 |
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
|
| 7 |
The demand curve is negatively sloped due to |
- A. Income effect
- B. Substitution effect
- C. Price effect
- D. All the three
|
| 8 |
Wit rapid economic growth in a country the individual demand curve will: |
- A. Rise
- B. Fall
- C. Extend
- D. Contract
|
| 9 |
A seller can increase his sales revenue by charging a lower price, if the demand has |
- A. e < 1
- B. e = 1
- C. e > 1
- D. e = 0
|
| 10 |
Mr. Suleri bought 50 litters of petrol when his monthly income was Rs. 25000. Now his monthly income has risen to Rs. 50000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is |
- A. 1
- B. 100%
- C. less than one
- D. more than one
|
