11th Principles of Economics MCQS Chapter 3

If supply of a commodity changes by less than 10% due to a 10% change in its price, then elasticity of supply will be

Less than unity

More than unity

Zero

Equal to unity

Elasticity of demand for the commodities which have substitutes, is

Zero

Less elastic

Infinite

More elastic

Slope of demand curve is

Positive

zero

fixed

Negative

If supply is fixed then due to fall of demand

Equilibrium price does not change

Equilibrium quantity increases

Equilibrium price decreases

Equilibrium price increases

Finance minister in order to increase the public revenue, imposes tax on the commodities whose demand is less elastic

Does not change tax rate

At low rate

Some times decreases the tax rate and some times increases the tax rate

At high rate

Increasing function of price is

Demand

Cosnsumption

Utility

Supply

Elasticity of supply if perishable goods is

Equal to unity

Less than unity

Zero

More than unity

Market equilibrium is attained when there exists in the market

Large quantity of commodity comes in the market

Imperfect competition

Perfect competition

Monopoly

Supply of goods depends upon

Utility

Price

Income

Price and income

According to the law of supply, there is relation in price and supply

Increasing

Inverse

indirect

Negative