11th Principles of Economics MCQS
Demand for a commodity means
Desire to purchase
All the three
Price of commodity
Power to purchase
Demand for the commodities whose use can be postponed is
More elastic
infinitely elastic
Perfectly inelastic
Less elastic
If the ratio of change in demand is equal to the ratio of change in price, elasticity of demand will be
More than unity
Infinite
Equal to unity
Less than unity
According to law of demand, curve moves from left to right downward. This type of tendency is called
Positive tendency
Rise and fall of demand
Extension and contraction of demand
Negative tendency
If demand falls more proportionately then that of supply then
Equilibrium quantity increases
Equilibrium price increases
Equilibrium price does not change
Equilibrium price decreases
When there are small and minor changes in price and demand then
Price elasticity
Point elasticity
Cross elasticity
Income elasticity
If demand changes by more than 10% due to 10% change in price, then elasticity of demand is called
More than unity
Infinite
Less than unity
Equal to unity
Reserve price of a commodity is that price
At which the seller sells his commodity tn the market
Which is equal to the cost of production of the seller
Which is more than the cost of production of the seller
Below which the seller is not ready to sell his commodity
If demand curve is parallel to y-axis, then elasticity of demand is
Equal to unity
More than unity
Less than unity
Zero
When supply changes due to other factors besides price, it is called
Fall of supply
Rise of supply
Rise and fall of supply
Extension and contraction of supply
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