11th Principles of Economics MCQS
If the total expenditure of the consumer does not change due to increase or decrease (change) in price, then nature of elasticity of demand will be
Elasticity of demand = zero
More than unity
Less than unity
Equal to unity
If due to a very slight decrease in price, demand goes on increasing, elasticity of demand will be
Infinite
Less than unity
Zero
More than unity
If the percentage change in supply is more than the percentage change in price, then elasticity of supply is called
Equal to unity
More than unity
Less than unity
Infinite
The duty of a market is not to
determine price
contact buyers and sellers
make exchange of goods
give maximum output
Quantity of a commodity which the consumers are ready to purchase at a particular price, is called
Demand
Demand and supply
Stock
Supply
If demand for commodity X changes due to the change in price of commodity, it is called
Arc elasticity
Income elasticity
Cross elasticity
Price elasticity
If demand rises more proportionately than that of supply, then
Equilibrium price decreases
Equilibrium quantity decreases
Equilibrium price does not change
Equilibrium price increases
Supply of durable goods is
Perfectly inelastic
Perfectly elastic
Less elastic
Elastic
Relationship between price and quantity demanded is called
Demand schedule
Assumptions of law of demand
Demand curve
Law of demand
The price at which entrepreneur has a sufficient time to meet the demand, is called
Market price
Normal price
Reserve price
Normal price
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