Economics MCQS with Answers 1st Year
To say that two goods are unrelated, their cross price elasticity of demand should be
1
less than 0
equal to 0
greater than 0
Mr. Suleri bought 50 litters of petrol when his monthly income was Rs. 25000. Now his monthly income has risen to Rs. 50000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is
more than one
less than one
100%
1
Price elastic of demand measures
the responsiveness of demand to price changes
the rate of change of sales
change in price caused by changes in demand
the value of sales at a given price
Cross elasticity of Suzuki and Honda cars will be
zero
negative
infinite
Positive
If price elasticity of demand is very low, the commodity is
substitute
luxury
necessity
not available
Which one is the assumption of law of demand?
income of the consumer should not change
quantity demand should not change
none of the above
price of the commodity should not change
When price elasticity of demand for normal goods in calculated, the value is always
greater than one
negative
positive
constant
When cross elasticity of demand for A and B is positive number, one can conclude that
the goods are substitutes
the goods are cheaper
the goods are complements
the goods are inferior
A horizontal demand curve has a price elasticity of
infinity
1
zero
variable
Wit rapid economic growth in a country the individual demand curve will:
Extend
Fall
Contract
Rise
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