| 1 |
The composite demand for a product is generally: |
- A. Elastic
- B. Inelastic
- C. Equal to unity
- D. Equal to zero
|
| 2 |
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
|
| 3 |
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
|
| 4 |
If elasticity of supply is one, supply curve will be |
- A. horizontal
- B. vertical
- C. passing through origin
- D. touching x-axis
|
| 5 |
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
|
| 6 |
The method to measure the elasticity of demand by the unitary method was introduced by. |
- A. Alfred Marshall
- B. Robbins
- C. Adam Smith
- D. Malthus
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| 7 |
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
|
| 8 |
Who present the Arc Elasticity formula for the measurement of elasticity of demand. |
- A. R.G.D Allen
- B. Pareto
- C. J.R. Hicks
- D. Robbins
|
| 9 |
If price changes by one % and supply changes by 2% then supply is |
- A. elastic
- B. inelastic
- C. indeterminate
- D. static
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| 10 |
The total quantity of a commodity available in or near the market which can be brought for sale at a short notice |
- A. Stock
- B. Supply
- C. Demand
- D. None of these
|