Demand is a function of
Q. Demand is a function of: A. Price B. Quantity C. Supply D. None of these Answer: Price
Demand and Supply MCQs
Income elasticity of demand for normal good is always
Q. Income elasticity of demand for normal good is always: A. 1 B. More than one C. Negative D. Positive Answer: Positive
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When price elasticity of demand for normal goods is calculated, the value is always
Q. When price elasticity of demand for normal goods is calculated, the value is always: A. Positive B. Negative C. Constant D. Greater than one Answer: Negative
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This is an assumption of law of demand
Q. This is an assumption of law of demand: Price of the commodity should not change Quantity should not change Supply should not change Income of consumer should not change Answer: Income of consumer should not change
When the quantity demanded of a goods is equal to the quantity supplied of that goods, then
Q. When the quantity demanded of a goods is equal to the quantity supplied of that goods, then ___________. There is a surplus The government is intervening in the market There is a shortage None of the above Answer: None of the above
An increase in the number of restaurants serving fast-food leads to
Q. An increase in the number of restaurants serving fast-food leads to _______. Growth in the demand of fast-food meals Increase in the supply of fast-food meals Increase in the price of fast-food meals Growth in the demand for substitutes of fast-food meals Answer: Increase in the supply of fast-food meals
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Which of the following metrics is not a constant factor while moving upwards along the supply curve?
Q. Which of the following metrics is not a constant factor while moving upwards along the supply curve? The price of the commodity The number of sellers Expected future prices Cost of the resources used for producing that commodity Answer: The price of the commodity
Because of increasing marginal costs, most supply curves
Q. Because of increasing marginal costs, most supply curves ________. Have a positive slope Have a negative slope Are horizontal Are vertical Answer: Have a positive slope
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If the income of a consumer increases or the price of a complementary good falls, then the
Q. If the income of a consumer increases or the price of a complementary good falls, then the __________. The demand curve for the product shifts rightward The demand curve for the product shifts leftward The supply curve for the product shifts rightward The supply curve for the product shifts leftward Answer: The demand curve
If price changes by 1% and supply changes by 2%, then the supply is
Q. If price changes by 1% and supply changes by 2%, then the supply is ______. Static Indeterminate Inelastic Elastic Answer: Elastic
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