11th Principles of Economics MCQS
When demand for a commodity changes due to the change in price of some other commodity, it is called
Arc elasticity
cross elasticity
income elasticity
Point elasticity
If price of a commodity constant but its supply increases or price decreases but supply remains constant, it is called
Extension of supply
Rise of supply
Fall of supply
Contraction of supply
Supply curve shifts due to better technique of production
Does not change
Vertical
Leftward
Rightward
Who does determine the reserve price
Government
Buyer
Seller
District adminitration
According to law of supply which factor changes the supply
level of income
climatic conditions
cost of producton
price
If elasticity of supply is less than unity then extending supply curve downward, it passes through or crosses
x-axis
y-axis
Point of origin
Becomes vertical
The cause of extension and contraction of demand is
Population
Income
Technology
Price
Slope of demand curve of exceptions of law of demand is
Zero
Fixed
Positive
Negative
The goods which can be used in place of each other, are called
Jointly demanded goods
Complimentary goods
Alternative goods
Substitute goods
If supply rises more proportionately than that of demand, then
Equilibrium price increases
Equilibrium price decreases
Equilibrium price does not change
Equilibrium quantity decreases
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