11th Principles of Economics MCQS Chapter 3

If quantity demanded for a commodity changes due to the change in income, it is called

Point elasticity

Income elasticity

Price elasticity

Cross elasticity

Vertical supply curve means

Same quantity supplied at differented price

Different quantities supplied at one price

Different quantities supplied at different prices

None of three

Which one is not condition of perfect competition

Perfect knowledge of market

Difference in price of good

Large number of buyers and sellers

Homogeneity of good

If demand curve is parallel to x-axis, then elasticity of demand is

Equal to unity

Infinite

Zero

More than unity

Elasticity of supply is the name of

Feature of change in supply

Change in price and income

Change in price

Change in income

Unity method to measure elasticity of supply is presented by

Robbins

Adam Smith

Marshall

Faruson

Quantity supplied of a commodity extends because

Price of the commodity increases

Change occurs in assumtions of law of supply

Population changes

Income of the entrepreneur increases

If demand is not influenced by the changes in price, elasticity of demand will be

Equal to unity

Zero

More than unity

Less than unity

If supply curve is vertical (parallel to y-axis), then elasticity of supply is

Infinite

More than unity

Equal to unity

Zero

Intersection of demand and supply curve is called

Equilibrium of demand

Equilibrium of firm

Equilibrium of supply

Equilibrium point