1. | If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought . |
A. |
B. |
C. |
D. |
2. | Given the following four possibilities, which one results in an increase in total consumer expenditures? |
A. |
B. |
C. |
D. |
3. | A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is : |
A. |
B. |
C. |
D. |
4. | An increase in price will result in an increase in total revenue if : |
A. |
B. |
C. |
D. |
5. | A vertical supply curve parallel to Y axis implies that the elasticity of supply is : |
A. |
B. |
C. |
D. |
6. | Point elasticity is useful for which of the following situations? |
A. |
B. |
C. |
D. |
7. | An increase in the demand for cameras and an increase in the number of sellers of cameras will |
A. |
B. |
C. |
D. |
8. | In the case of an inferior good, income elasticity oi demand is : |
A. |
B. |
C. |
D. |
9. | Which of the following statements is correct? |
A. |
B. |
C. |
D. |
10. | Contraction of supply is the result of : |
A. |
B. |
C. |
D. |
11. | 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. |
12. | Elasticity of supply is zero means |
A. |
B. |
C. |
D. |
13. | If price of air-cordifioner increases from Rs. 30,000 to Rs. 30,010 and resultant change in demand is negligible we use the measure of__________to measure elasticity. |
A. |
B. |
C. |
D. |
14. | When supply curve moves to the left it means |
A. |
B. |
C. |
D. |
15. | 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. |
16. | Elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by |
A. |
B. |
C. |
D. |
17. | Elasticity of supply is greater than one when |
A. |
B. |
C. |
D. |
18. | All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it? |
A. |
B. |
C. |
D. |
19. | The price elasticity of demand is defined as the responsiveness of : |
A. |
B. |
C. |
D. |
20. | When economists speak of the utility of a certain good, they are referring to |
A. |
B. |
C. |
D. |