11th Principles of Economics MCQS Chapter 3

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11th Principles of Economics MCQS


If total expenditure of the consumer increases due to decrease in price, then nature of elasticity of demand will be
Less than unity
More than unity
Equal to unity
Elasticity of demand = zero

If demand changes by 10% due to 10% change in price, then elasticity of demand is called
More than unity
Infinite
Less than unity
Equal to unity

When demand curve shifts leftward (or downward), it is called
Fall of demand
Extension of demand
Rise of demand
Contraction of demand

Cause of shifting of demand curve is
Change in price
Desire
Exceptions
Other factors

When supply curve shifts leftwards or up, it is called
Fall of supply
Extension of supply
Contraction of supply
Rise of supply

What is meant by demand for a commodity in economics
To have power to buy
To have power to buy a commodity with desire
To desire for a commodity
Quantity of a commodity

If percentage change in supply is less than the percentage change in price, then elasticity of supply is called
Less than unity
More than unity
Zero
Equal to unity

The equilibrium of the market is that demand and supply to each other are
negative
equal
opposite
positive

If supply does not change, then due to rise of demand
Equilibrium quantity decreases
Equilibrium price decreases
Equilibrium price increases
Equilibrium price does not change

If the demand for a commodity is less elastic, then an entrepreneur in order to increase his profit
Will not change its price
None of these
Will increase its price
Will decrease its price

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