11th Principles of Economics MCQS
In which direction demand and supply curves move
Same
Horizontal
Opposite
parallel
By increasing the cost of production, the supply
contracts
Extends
Falls
Rises
If supply increase due to increase in price, it is called
Extension of supply
Rise of supply
Contraction of supply
Fall of supply
When the price of a commodity increases but its demand does not change, this situation is called
Rise of demand
Constant demand
Fall of demand
Contraction of demand
When supply curve shifts rightward or down it is called
Extension of supply
Fall of supply
Rise of supply
Contraction of supply
If the ratio of change in demand is less than the ratio of change in price, elasticity of demand will be
Zero
Less than unity
Equal to unity
More than unity
Relationship between price of a commodity and demand for it exists
Inverse
Indirect
None of these
Positive
Id demand changes by less than 10% due to 10% change in price, then elasticity of demand is called
More than unity
Infinite
Less than unity
Equal to unity
Who did present formula to measure Arc elasticity of demand
Marshall
Adam Smith
Allen
Keynes
Demand for the goods which have different uses, is
Zero elastic
Infinity
More elastic
Less elastic
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