| 1 |
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
|
| 2 |
Demand is a function of |
- A. price
- B. quantity
- C. supply
- D. none
|
| 3 |
When the demand of a product rises due to factors except price it will be. |
- A. Extension of demands
- B. Rise of demand
- C. Contraction of demand
- D. Extension of demand
|
| 4 |
Market demand curve is a summation of all individual demand curves as |
- A. Vertical
- B. horizontal
- C. mathematical
- D. local
|
| 5 |
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
|
| 6 |
Normally a demand curve will have the shape |
- A. horizontal
- B. vertical
- C. downward sloping
- D. upward sloping
|
| 7 |
Cross elasticity of Suzuki and Honda cars will be |
- A. Positive
- B. negative
- C. zero
- D. infinite
|
| 8 |
If demand is inelastic, a change in the price |
- A. will change the quantity in same direction
- B. will change total revenue in same direction
- C. will change total revenue in the opposite direction
- D. will not change quantity
|
| 9 |
If price and total revenue move in the same direction, then demand is |
- A. inelastic
- B. elastic
- C. unrelated
- D. perfectly elastic
|
| 10 |
If quantity demanded is completely unresponsive to changes in price, demand is |
- A. inelastic
- B. unit elastic
- C. elastic
- D. perfectly inelastic
|
