| 1 |
If a firm makes 200 units of a good available at a price of Rs. 10 per unit, the elasticity is |
- A. 0.05
- B. 10
- C. 20
- D. indeterminate
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| 2 |
The elasticity of demand for a product is less than unity. Therefore, with a fall in its price, total expenditure of consumer will. |
- A. Fall
- B. Rise
- C. Remain the same
- D. Fluctuate
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| 3 |
When a supply of a commodity increases without change in price it is called |
- A. fall in supply
- B. expansion in supply
- C. contraction in supply in
- D. rise in supply
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| 4 |
Elasticity of demand in case of minor change in price and quantity demand will be . |
- A. Income elasticity of demand
- B. Cross elasticity of demand
- C. Point elasticity of demand
- D. Arc elasticity of demand
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| 5 |
Supply curve |
- A. is vertical in long run
- B. is flatter in long run
- C. is same in long and short run
- D. is horizontal in both short and long run
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| 6 |
Long period supply curve is |
- A. relatively flatter
- B. relatively steeper
- C. more elastic
- D. a and c of above
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| 7 |
Other things remaining the same, quantity supplied of a commodity increases with rise in price and decreases with fall in price are called |
- A. Law of Supply
- B. Law of Demand
- C. Law of equilibrium
- D. None of these
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| 8 |
What best explains a shift in market supply curve to the right? |
- A. an advertising campaign is successful in promoting the good
- B. a new technique makes it cheaper to produce the good
- C. the government introduces a tax on the good
- D. the price of raw materials increases
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| 9 |
If the price of a product increase from Rs. 12 per unit and as a consequence quantity demand of the product falls from 100 units to 50 units . The price elasticity of the product will be. |
- A. 2.5
- B. 0.5
- C. 1.5
- D. 3.5
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| 10 |
With a fall in the price of a Giffen good or inferior good its quantity demand will. |
- A. Fall
- B. Rise
- C. Remain unchanged
- D. None of three
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