| 1 |
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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| 2 |
The composite demand for a product is generally: |
- A. Elastic
- B. Inelastic
- C. Equal to unity
- D. Equal to zero
|
| 3 |
The method to measure the elasticity of demand is : |
- A. Percentage method
- B. Total outlay approach
- C. Geometric approch
- D. All the three
|
| 4 |
Supply curve will shift when |
- A. price falls
- B. price rises
- C. demand shifts
- D. technology changes
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| 5 |
If elasticity of supply is one, supply curve will be |
- A. horizontal
- B. vertical
- C. passing through origin
- D. touching x-axis
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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 |
The demand for a product is inelastic. In order to increase government revenue, the finance minister will : |
- A. Lower down the tax rate
- B. Increase the tax rate
- C. Not change the tax rate
- D. Double the tax rate
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| 8 |
If elasticity of supply is greater than one. supply curve will be |
- A. horizontal
- B. vertical
- C. passing through origin
- D. touching y-axis
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| 9 |
The product which have close substitute their demand is always. |
- A. More elastic
- B. Perfectly elastic
- C. Perfectly inelastic
- D. Less elastic
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| 10 |
In case of perfectly elastic demand curve, the demand curve will be parallel to the : |
- A. Horizontal axis
- B. Vertical Axis
- C. None of the above
|