Theory Of Demand And Supply

20 Questions  I  By Sweetsalman123
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1.  If price of computers increases by 10% and supply increases by 25%. The elasticity of supply is :
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.  When supply curve moves to the left it means
A.
B.
C.
D.
4.  When total demand for a commodity whose price has fallen increases, it is due to:  
A.
B.
C.
D.
5.  The way in which rational consumers allocate their expenditure on goods and services is best described by ________________.
A.
B.
C.
D.
6.  The price of hot dogs increases by 22% and the quantity of hot dogs demanded falls by 25%. This indicates that demand for hot dogs is :
A.
B.
C.
D.
7.  The price of a commodity decreases from Rs. 6 to Rs. 4 and his demand for goods increases from 10 units to 15 units, Find the coefficient of price elasticity.
A.
B.
C.
D.
8.  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.
9.  Which one is not an assumption of the theory of demand based on analysis of indifference curves?
A.
B.
C.
D.
10.  Supply is the
A.
B.
C.
D.
11.  An increase in the supply of a good is caused by :  
A.
B.
C.
D.
12.  If the supply of bottled water decreases, the equilibrium price ____________and the equilibrium quantity _________.
A.
B.
C.
D.
13.  An increase in the number of sellers of bikes will increase the
A.
B.
C.
D.
14.  The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of       
A.
B.
C.
D.
15.  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.
16.  Elasticity of supply is greater than one when
A.
B.
C.
D.
17.  A relative price is      
A.
B.
C.
D.
18.  With an increase in the price of diamond, its demand also increases. This is because it is a:      
A.
B.
C.
D.
19.  In the case of a Giffen good, the demand curve will be :                      
A.
B.
C.
D.
20.  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.
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