Questions
41
Demand for a commodity refers to:
Answer: Amount of the commodity demanded at a particular price and at a particular time
42
Which among the following statement is INCORRECT?
Answer: If two demand curves are linear and intersecting each other then coefficient of elasticity would be same on different demand curves at the point of intersection.
43
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:
Answer: Increase
44
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
Answer: Infinite
45
An individual demand curve slopes downward to the right because of the:
Answer: All of the above
46
Income elasticity of demand is defined as the responsiveness of:
Answer: Quantity demanded to a change in income
47
The supply of a good refers to:
Answer: Quantity of the good offered for sale at a particular price per unit of time
48
In the short run, when the output of a firm increases, its average fixed cost:
Answer: Decreases
49
The cost of one thing in terms of the alternative given up is called:
Answer: opportunity cost
50
Assume that consumer’s income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certainty that the equilibrium:
Answer: Quantity will decrease
