| 1 |
Demands and supply curves cross at |
- A. always at 60 degree
- B. at 90 degree
- C. at equal angle
- D. at any angle
|
| 2 |
A rise in supply and demand in equal proportion will result in |
- A. increase in equilibrium price and decrease in equilibrium quantity
- B. decreases in equilibrium price and increases in equilibrium quantity
- C. no change in equilibrium price and increases in equilibrium quantity
- D. increases in equilibrium price and no change in equilibrium quantity
|
| 3 |
The price and sales of sugar both increase. What could be the cause of this? |
- A. a decrease in the income of the consumers.
- B. a decrease in the tax on sugar
- C. An increase in the wages of workers in the sugar industry
- D. An increase in the price of sugar substitutes
|
| 4 |
When price is fixed below equilibrium level, there will be |
- A. surplus commodity in the market
- B. shortage of commodity in the market
- C. supply curve will shift
- D. demand curve will shift
|
| 5 |
A fall fall in supply will take place due to a: |
- A. Business collusion
- B. Bumper crop
- C. Fall in custom duty
- D. Fall in income
|
| 6 |
If equilibrium price rises but equilibrium quantity remains unchanged, the cause is |
- A. supply and demand both increase equally
- B. supply and demand both decrease equally
- C. supply decreases and demand increases
- D. supply increases and demand decreases
|
| 7 |
If we know that quantities bought and sold are equal, we can conclude that |
- A. quantities demanded and supplied are also equal
- B. the market is in equilibrium
- C. there will be no tendency for a price change
- D. all of the above
|
| 8 |
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
|
| 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 |
A decrease in demand causes the equilibrium price to |
- A. rise
- B. fall
- C. remain constant
- D. indeterminate
|
