| 1 |
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
|
| 2 |
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
|
| 3 |
If price elasticity of demand is very low, the commodity is |
- A. necessity
- B. luxury
- C. substitute
- D. not available
|
| 4 |
Irrespecitve of price, Somia always spends Rs. 100 a week on ice cream, we conculde that |
- A. elasticity of demand is 0
- B. elasticity of demand is 1
- C. elasticity of demand id infinite
- D. law of demand has been violated
|
| 5 |
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
|
| 6 |
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
|
| 7 |
When price elasticity of demand for normal goods in calculated, the value is always |
- A. positive
- B. negative
- C. constant
- D. greater than one
|
| 8 |
The demand of a commodity having many substitutes is |
- A. more elastic
- B. less elastic
- C. zero elastic
- D. infinite elastic
|
| 9 |
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
|
| 10 |
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
|
