The elasticity of demand of durable goods is
Q. The elasticity of demand of durable goods is: Less than unity Greater than unity Equal to unity Zero Answer: Greater than unity
The elasticity of demand of durable goods is Read More »
Demand and Supply MCQs
Which one is the assumption of law of demand?
Q. Which one is the assumption of law of demand? Price of the commodity should not change Quantity demanded should not change Prices of substitutes should not change Demand curve must be linear Answer: Prices of substitutes should not change
Which one is the assumption of law of demand? Read More »
The following is the direct tax among
Q. The following is the direct tax among: House tax Entertainment tax Service tax Value Added tax Answer: House tax
The following is the direct tax among Read More »
The cost of one thing in terms of the alternative given up is called
Q. The cost of one thing in terms of the alternative given up is called: Real cost Production cost Physical cost opportunity cost Answer: opportunity cost
The cost of one thing in terms of the alternative given up is called Read More »
An individual demand curve slopes downward to the right because of the
Q. An individual demand curve slopes downward to the right because of the: Working of the law of diminishing marginal utility substitution effect of decrease in price income effect of fall in Price All of the above Answer: All of the above
An individual demand curve slopes downward to the right because of the Read More »
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to
Q. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to: Increase B Decrease Remain the same Become zero Answer: Increase
Demand for a commodity refers to
Q. Demand for a commodity refers to: Need for the commodity Desire for the commodity Amount of the commodity demanded at a particular price and at a particular time Quantity demanded of that commodity Answer: Amount of the commodity demanded at a particular price and at a particular time
Demand for a commodity refers to Read More »
Which of the following is a demand function?
Q. Which of the following is a demand function? Q + 4P = 20 Q = 35 + 3P Q – 2P – 15 = 0 5P – Q = 4 Answer: Q + 4P = 20
Which of the following is a demand function? Read More »
If demand is unitary elastic, a 25% increases in price will result in
Q. If demand is unitary elastic, a 25% increases in price will result in: 25% change in total revenue No change in quantity demanded 1% decrease in quantity demanded 25% decrease in quantity demanded Answer: 25% decrease in quantity demanded
If demand is unitary elastic, a 25% increases in price will result in Read More »
Other things equal, if a good has more substitutes, its price elasticity of demand is
Q. Other things equal, if a good has more substitutes, its price elasticity of demand is: Larger Smaller Zero Unity Answer: Larger
Other things equal, if a good has more substitutes, its price elasticity of demand is Read More »