Theory Of Demand And Supply

20 Questions  I  By Sweetsalman123 on February 28, 2012
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1.  Supply is a__________________ concept.               
A.
B.
C.
D.
2.  A decrease in price will result in an increase in total revenue if :
A.
B.
C.
D.
3.  The aim of the consumer in allocating his income is to ____________________.             
A.
B.
C.
D.
4.  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.
5.  If the demand is more than supply then the pressure on price will be
A.
B.
C.
D.
6.  The quantity supplied of a good or service is the amount that       
A.
B.
C.
D.
7.  If the price of Pepsi decreases relative to the price of Coke and 7-UP, the demand for :  
A.
B.
C.
D.
8.  When supply curve moves to the left it means
A.
B.
C.
D.
9.  All of the following are determinants of demand except:
A.
B.
C.
D.
10.  If the percentage change in supply is less than the percentage change in price it is called                                                                
A.
B.
C.
D.
11.   The supply curve for perishable commodities is ___________.  
A.
B.
C.
D.
12.  Conspicuous goods are also known as      
A.
B.
C.
D.
13.  When total demand for a commodity whose price has fallen increases, it is due to:  
A.
B.
C.
D.
14.  By consumer surplus economists mean
A.
B.
C.
D.
15.  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.
16.  Demand is the         
A.
B.
C.
D.
17.  The luxury goods like jewellery and fancy articles will have         
A.
B.
C.
D.
18.  A discount store has a special offer on CDs. It reduces their price from Rs.150 to Rs. 100. Suppose the store manager observes that the quantity demanded increases from 700 CDs to 1,300 CDs. What is the price elasticity of demand for CDs?
A.
B.
C.
D.
19.  If, as people's income increases, the quantity demanded of a good decreases, the good is called        
A.
B.
C.
D.
20.  Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?
A.
B.
C.
D.
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