| 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 |
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
|
| 3 |
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
|
| 4 |
A decrease in demand causes the equilibrium price to |
- A. rise
- B. fall
- C. remain constant
- D. indeterminate
|
| 5 |
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
|
| 6 |
When the supply curve of a product is parallel to the vertical axis, it would mean that; |
- A. Different quantities of a product are supplied at the same price.
- B. Different quantities of a product are supplied at different price.
- C. Same quantities of a product are supplied at different price.
- D. None of three
|
| 7 |
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
|
| 8 |
Extension of supply will take place as a consequence of: |
- A. Change in price
- B. Change in population
- C. Change in technology
- D. Change in money supply
|
| 9 |
In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then |
- A. price will fall
- B. price remains same
- C. price will rise
- D. quantity rises
|
| 10 |
An increases in the price of mutton provides information which |
- A. tells consumers to buy more mutton
- B. tells consumers to buy more chicken
- C. tells producers to produce more mutton
- D. b and c of above
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