Q. In case the price of a product and the total revenue from that product move in the same direction, then the demand is ____________. Perfectly elastic Inelastic Elastic Unrelated Answer: Inelastic
Q. Which of the following is not a cause of the shift in demand for a product? Change in the price of substitutes Change in the income of a consumer Change in the price of a product None of the above Answer: Change in the price of a product
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Q. When the elasticity of demand for a commodity is very low, it shows that the product ________. Has little importance in the total budget Is a luxury Is a necessity None of the above Answer: Is a necessity
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Q. When the price of a product falls by 10% and its demand rises by 30%, then the elasticity of demand is _________. 13 3 10 30 Answer: 3
Q. If the quantity demanded of a commodity is unresponsive to change in prices, then the demand of that commodity is ________. Perfectly inelastic Elastic Unit elastic Inelastic Answer: Perfectly inelastic
Q. Law of demand shows a relation between the ___________. Quantity demand and quantity supply of a commodity Income and quantity demand of a commodity Price and quantity of a commodity Income and price of a commodity Answer: Price and quantity of a commodity
Q. Zubair has a special taste for college canteen is hotdogs. The owner of the canteen doubles the prices of hotdogs. Zubair did not respond to the increase in prices and kept on demanding the same quantity of hotdogs. His demand for hotdogs is: Perfectly elastic Perfectly inelastic Elastic Less elastic Answer: Perfectly inelastic
Q. If demand is inelastic, a change in the price: Will change the quantity in same direction Will change total revenue in same direction Will change total revenue in the opposite direction Will not change quantity Answer: Will change total revenue in same direction
Q. The elasticity for the demand of durable goods is __________. Zero Equal to unity Greater than unity Less than unity Answer: Greater than unity
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Q. Which of the following is an assumption made while drawing the demand curve? The demand curve must be linear The price of substitutes should not change The quantity demanded should not change The price of the commodity should not change Answer: The price of substitutes should not change
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