Theory Of Demand And Supply

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Theory Of Demand And Supply

  
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1.  At higher prices people demand more of certain goods not for their worth but for their prestige value - This is called
A.
B.
C.
D.
2.  A movement along the demand curve for soft drinks is best described as :
A.
B.
C.
D.
3.  All of the following are determinants of demand except:
A.
B.
C.
D.
4.  If the price of Pepsi decreases relative to the price of Coke and 7-UP, the demand for :  
A.
B.
C.
D.
5.  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.
6.  In the case of an inferior good, income elasticity oi demand is :
A.
B.
C.
D.
7.  Conspicuous goods are also known as      
A.
B.
C.
D.
8.   The supply curve for perishable commodities is ___________.  
A.
B.
C.
D.
9.  The consumer is in equilibrium at a point where the budget line :
A.
B.
C.
D.
10.  Total utility is maximum when :
A.
B.
C.
D.
11.  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.
12.  A relative price is      
A.
B.
C.
D.
13.  The goods that exhibit direct price-demand relationship are called:                                                                                 
A.
B.
C.
D.
14.  With an increase in the price of diamond, its demand also increases. This is because it is a:      
A.
B.
C.
D.
15.  When total demand for a commodity whose price has fallen increases, it is due to:  
A.
B.
C.
D.
16.  If a good is a luxury, its income elasticity of demand is :
A.
B.
C.
D.
17.  If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between beef and chicken is
A.
B.
C.
D.
18.  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.
19.  Given the following four possibilities, which one results in an increase in total consumer expenditures?
A.
B.
C.
D.
20.  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.
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