| 1 |
Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is |
- A. a shortage
- B. a surplus
- C. excess supply
- D. loss
|
| 2 |
Market equilibrium means |
- A. number of buyers and sellers are equal
- B. demand and supply of commodity are equal
- C. no price is changing
- D. prices rise very slowly
|
| 3 |
Markets where firms supply goods and services demanded by households are |
- A. factor market
- B. product market
- C. open markets
- D. resource markets
|
| 4 |
Demands and supply curves cross at |
- A. always at 60 degree
- B. at 90 degree
- C. at equal angle
- D. at any angle
|
| 5 |
When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be. |
- A. Less than unity
- B. Greater than unity
- C. Equal to unity
- D. Equal to zero
|
| 6 |
Price of a product is determined in a free market |
- A. by demand for the product
- B. by supply of the product
- C. by both demand and supply
- D. by the government
|
| 7 |
A decrease in demand causes the equilibrium price to |
- A. rise
- B. fall
- C. remain constant
- D. indeterminate
|
| 8 |
If equilibrium price rises but equilibrium quantity is unchanged, the cause is |
- A. supply and demand both increase equally
- B. supply and demand decrease equally
- C. supply curve is vertical and demand increases
- D. supply increases and demand is same
|
| 9 |
Market equilibrium means a situation where |
- A. Q<sub>s</sub>= Q<sub>d</sub>
- B. Q<sub>s</sub>= Q<sub>p</sub>
- C. Q<sub>d</sub>= Q<sub>p</sub>
- D. Q<sub>q</sub>= Q<sub>p</sub>
|
| 10 |
When there is big change in quantity supplied resulting from a minor change inits price,its elasticity of supply will be. |
- A. Equal to unity
- B. Less than unity
- C. Equal to zero
- D. Greater than unity
|
