| 1 |
In May 2012, firm was supplying 1000 kg of sugar at market price of Rs. 60/- per kg. During June 2012, firm's supply of sugar had decreased to 900 kg at price Rs. 40/- per kg. These changes show that supply of sugar is |
- A. Perfectly elastic
- B. Perfectly inelastic
- C. Less elastic
- D. More elastic
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| 2 |
During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to |
- A. rightward
- B. leftward
- C. downward
- D. no direction
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| 3 |
An increases in demand would cause supply curve to |
- A. shift to the left
- B. shift to the right
- C. change in slope of supply curve
- D. no effect on supply
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| 4 |
With a fall in price quantity demand changes in such a way that total expenditure of the consumer remain constant, elasticity of demand will be. |
- A. Equal to unity
- B. Greater than unity
- C. Less than unity
- D. Equal to zero
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| 5 |
Products A and B are substitutes whereas A and C are complement. With a rise in the price of product A, quantity demand of: |
- A. Product B will go up
- B. Product will fall
- C. Both the above will take place
- D. Nothing will take place
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| 6 |
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
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| 7 |
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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| 8 |
Which one of the following pairs represent complementary demand for a product. |
- A. Tea & coffe
- B. Butter & Margarine
- C. Shirt & shoes
- D. Shirt & trouser
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| 9 |
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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| 10 |
When the percentage change in quantity demanded is greater than the percentage change in price, elasticity of demand for the product will be. |
- A. Equal to unity
- B. Less than unity
- C. Greater than unity
- D. Equal to zero
|