| 1 |
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
|
| 2 |
If price and total revenue move in the same direction, then demand is |
- A. inelastic
- B. elastic
- C. unrelated
- D. perfectly elastic
|
| 3 |
The demand curve is negatively sloped due to |
- A. Income effect
- B. Substitution effect
- C. Price effect
- D. All the three
|
| 4 |
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
|
| 5 |
If demand is unitary elastic, a 25% increase in price will result in |
- A. 25% change in total revenue
- B. no change in quantity demanded
- C. 1% decrease in quantity demanded
- D. 25% decrease in quantity demanded
|
| 6 |
Other things equal, if a good has more substitutes, its price elasticty of demand is |
- A. larger
- B. smaller
- C. zero
- D. unity
|
| 7 |
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
|
| 8 |
Which one is the assumption of law of demand? |
- A. price of the commodity should not change
- B. quantity demand should not change
- C. income of the consumer should not change
- D. none of the above
|
| 9 |
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
|
| 10 |
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
|
