Question # 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.

Choose an answer

2.5

0.5

1.5

3.5

An increases in demand would cause supply curve to

Choose an answer

shift to the left

shift to the right

change in slope of supply curve

no effect on supply

Who present the Arc Elasticity formula for the measurement of elasticity of demand.

Choose an answer

R.G.D Allen

Pareto

J.R. Hicks

Robbins

Elasticity of demand in case of minor change in price and quantity demand will be .

Choose an answer

Income elasticity of demand

Cross elasticity of demand

Point elasticity of demand

Arc elasticity of demand

In case of perfectly elastic demand curve, the demand curve will be parallel to the.

Choose an answer

Horizontal Axis

Vertical Axis

None of the above

If the price of a product rises, quantity demand if its substitute will.

Choose an answer

Fall

Rise

Remain unchanged

Fluctuate

When a supply of a commodity increases without change in price it is called

Choose an answer

fall in supply

expansion in supply

contraction in supply in

rise in supply

When the percentage change in quantity demanded is greater than the percentage change in price, elasticity of demand for the product will be.

Choose an answer

Equal to unity

Less than unity

Greater than unity

Equal to zero

If elasticity of supply is one, supply curve will be

Choose an answer

horizontal

vertical

passing through origin

touching x-axis

Supply of a commodity means

Choose an answer

willingness to sell a certain quantity

physical stocks available

planned production

total production in a given period

If price changes by one % and supply changes by 2% then supply is

Choose an answer

elastic

inelastic

indeterminate

static

The total quantity of a commodity available in or near the market which can be brought for sale at a short notice

Choose an answer

Stock

Supply

Demand

None of these

If elasticity of supply is greater than one. supply curve will be

Choose an answer

horizontal

vertical

passing through origin

touching y-axis

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.

Choose an answer

Equal to unity

Greater than unity

Less than unity

Equal to zero

The method to measure the elasticity of demand is :

Choose an answer

Percentage method

Total outlay approach

Geometric approch

All the three

With a fall in the price of a Giffen good or inferior good its quantity demand will.

Choose an answer

Fall

Rise

Remain unchanged

None of three

Long period supply curve is

Choose an answer

relatively flatter

relatively steeper

more elastic

a and c of above

Which one is increasing function of price

Choose an answer

demand

utility

supply

consumption

Supply curve will shift when

Choose an answer

price falls

price rises

demand shifts

technology changes

In case of perfectly elastic demand curve, the demand curve will be parallel to the :

Choose an answer

Horizontal axis

Vertical Axis

None of the above

The price of a product double due to which its quantity demand falls to one half. The elasticity of demand for product will be:

Choose an answer

Equal to unity

Lass than unity

Greater than unity

Equal to zero

The product which have close substitute their demand is always.

Choose an answer

More elastic

Perfectly elastic

Perfectly inelastic

Less elastic

More Classes

Other Links

Economics Ics Part 1 English Medium Chapter 5 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer