| 1 |
If elasticity of demand is very low it shows that the commodity is |
- A. a necessity
- B. a luxury
- C. has little importance in total budget
- D. a and c above
|
| 2 |
Market demand curve is a summation of all individual demand curves as |
- A. Vertical
- B. horizontal
- C. mathematical
- D. local
|
| 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 |
The demand curve is negatively sloped due to |
- A. Income effect
- B. Substitution effect
- C. Price effect
- D. All the three
|
| 5 |
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is |
- A. 10%
- B. 30%
- C. 3
- D. 1/3
|
| 6 |
Price and demand are positively correlated in case of |
- A. necessities
- B. comforts
- C. Giffen goods
- D. Luxuries
|
| 7 |
The demand of a will expand when: |
- A. Other things do not remain constant.
- B. Price of the products changes.
- C. Value of money falls.
- D. None of the three
|
| 8 |
A horizontal demand curve has a price elasticity of |
- A. zero
- B. infinity
- C. 1
- D. variable
|
| 9 |
The demand of a good falls when. |
- A. Its price falls
- B. Price of the substitute changes
- C. its price rises
- D. It price remain constant
|
| 10 |
The law demand will not be valid in case of. |
- A. Very high price products
- B. Normal goods
- C. Price effect
- D. Income effects
|
