Question # 1

Demand and supply forces determine market price

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only in perfect competition

only in monopoly market

in both markets

none of the above

Equilibrium

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is a state that can never be achieved in economics

is an important idea for predicting economics changes

is a stable condition

is an unstable condition

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is

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supply and demand both increase equally

supply and demand both decrease equally

supply decreases and demand increases

supply increases and demand decreases

If we know that quantities bought and sold are equal, we can conclude that

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quantities demanded and supplied are also equal

the market is in equilibrium

there will be no tendency for a price change

all of the above

If price is set above equilibrium level, there will be

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surplus commodity in the market

shortage of commodity in the market

supply curve will shift

demand curve will shift

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.

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Less than unity

Greater than unity

Equal to unity

Equal to zero

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then

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price will fall

price remains same

price will rise

quantity rises

A decrease in demand causes the equilibrium price to

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rise

fall

remain constant

indeterminate

Market equilibrium means

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number of buyers and sellers are equal

demand and supply of commodity are equal

no price is changing

prices rise very slowly

In case of a fall in supply.

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Quantity supplied falls at the same price.

Quantity supplied rises at the same price.

Quantity supplied remain at the lower price.

None of the three

Price of a product is determined in a free market

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by demand for the product

by supply of the product

by both demand and supply

by the government

Demands and supply curves cross at

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always at 60 degree

at 90 degree

at equal angle

at any angle

Market Price of Perishable

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Commodities

Utility

Consumer

None of these

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Economics Ics Part 1 English Medium Chapter 6 Online Test MCQs With Answers

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