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Theory Of Demand And Supply

20 Questions  I  By Sweetsalman123
Theory Of Demand And Supply

  
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1.  The supply function is given as Q= -100 + 10P. Find the elasticity using point method, when price is Rs.15.
A.
B.
C.
D.
2.  In the case of a straight line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be :
A.
B.
C.
D.
3.  Demand is the         
A.
B.
C.
D.
4.  A vertical supply curve parallel to Y axis implies that the elasticity of supply is :
A.
B.
C.
D.
5.  In Economics when demand for a commodity increases with a fall in its price it is known as                                                                                                                                                                                     
A.
B.
C.
D.
6.  By consumer surplus economists mean
A.
B.
C.
D.
7.  If, as people's income increases, the quantity demanded of a good decreases, the good is called        
A.
B.
C.
D.
8.  A decrease in price will result in an increase in total revenue if :
A.
B.
C.
D.
9.  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 :
A.
B.
C.
D.
10.  Which of the following pairs of goods is an example of substitutes?
A.
B.
C.
D.
11.  In the case of an inferior good, income elasticity oi demand is :
A.
B.
C.
D.
12.  Which one is not an assumption of the theory of demand based on analysis of indifference curves?
A.
B.
C.
D.
13.  If the percentage change in supply is less than the percentage change in price it is called                                                                
A.
B.
C.
D.
14.  Suppose a department store has a sale on its silverware. If the price of a plate-setting is reduced from Rs. 300 to Rs. 200 and the quantity demanded increases from 3,000 plate- settings to 5,000 plate-settings, what is the price elasticity of demand for silverware?
A.
B.
C.
D.
15.  The elasticity of supply is defined as the
A.
B.
C.
D.
16.  Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price :
A.
B.
C.
D.
17.  A movement along the demand curve for soft drinks is best described as :
A.
B.
C.
D.
18.  If the price of Pepsi decreases relative to the price of Coke and 7-UP, the demand for :  
A.
B.
C.
D.
19.  Suppose a consumer's income increases from RS. 30,000 to Rs. 36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs to 30 CDs. What is the consumer's income elasticity of demand for CDs?
A.
B.
C.
D.
20.  If the local pizzeria raises the price of a medium pizza from Rs.60 to Rs. 100 and quantity ] demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand
A.
B.
C.
D.
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