| 1 |
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
|
| 2 |
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
|
| 3 |
Price and demand are positively correlated in case of |
- A. necessities
- B. comforts
- C. Giffen goods
- D. Luxuries
|
| 4 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
|
| 5 |
The demand curve is negatively sloped due to |
- A. Income effect
- B. Substitution effect
- C. Price effect
- D. All the three
|
| 6 |
Demand is a function of |
- A. price
- B. quantity
- C. supply
- D. none
|
| 7 |
When cross elasticity of demand for A and B is positive number, one can conclude that |
- A. the goods are cheaper
- B. the goods are inferior
- C. the goods are substitutes
- D. the goods are complements
|
| 8 |
If quantity demanded is completely unresponsive to changes in price, demand is |
- A. inelastic
- B. unit elastic
- C. elastic
- D. perfectly inelastic
|
| 9 |
Which of the following is a demand function? |
- A. Q + 4P = 20
- B. Q = 35 + 3P
- C. Q - 2P - 15 =0
- D. 5P - Q = 4
|
| 10 |
The elasticity of demand of durable goods is |
- A. less than unity
- B. greater than unity
- C. equal to unity
- D. zero
|
