Theory Of Demand And Supply

20 Questions  I  By Sweetsalman123
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1.  The supply of a good refers to :
A.
B.
C.
D.
2.  Which of the following pairs of goods is an example of substitutes?
A.
B.
C.
D.
3.  The price elasticity of demand is defined as the responsiveness of :
A.
B.
C.
D.
4.  The good which cannot be consumed more than once is known as                  
A.
B.
C.
D.
5.  The quantity purchased will remain constant irrespective of the change in income. This is known as
A.
B.
C.
D.
6.  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.
7.  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.
8.  If electricity demand is inelastic, and electric rates increase, which of the following is likely to occur?  
A.
B.
C.
D.
9.  With an increase in the price of diamond, its demand also increases. This is because it is a:      
A.
B.
C.
D.
10.  An increase in the number of sellers of bikes will increase the
A.
B.
C.
D.
11.  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.
12.  When supply curve moves to the left it means
A.
B.
C.
D.
13.  A vertical supply curve parallel to Y axis implies that the elasticity of supply is :
A.
B.
C.
D.
14.  Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively :
A.
B.
C.
D.
15.  As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall. This means:  
A.
B.
C.
D.
16.  In the case of an inferior good, income elasticity oi demand is :
A.
B.
C.
D.
17.  Total utility is maximum when :
A.
B.
C.
D.
18.  Which of the following statements is correct?                                                              
A.
B.
C.
D.
19.  When economists speak of the utility of a certain good, they are referring to
A.
B.
C.
D.
20.  All of the following are determinants of demand except:
A.
B.
C.
D.
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