Economics MCQS with Answers 1st Year
Income elasticity of demand for normal good is always
more than one
1
positive
negative
When the demand of a product rises due to factors except price it will be.
Contraction of demand
Extension of demand
Rise of demand
Extension of demands
Haris has a special taste for chicken rolls of college canteen. The owner of the canteen doubles the price of chicken roll. Haris did not respond to the increase in prices and kept on demanding the same quantity of chicken roll. His demand for chicken roll is
perfectly inelastic
less elastic
perfectly elastic
elastic
The demand curve is negatively sloped due to
Price effect
Income effect
Substitution effect
All the three
Other things equal, if a good has more substitutes, its price elasticty of demand is
smaller
larger
zero
unity
Law of demand shows relation between
income and quantity demanded
income and price of commodity
price and quantity of a commodity
quantity demanded and quantity supplied
If elasticity of demand is very low it shows that the commodity is
a luxury
a and c above
a necessity
has little importance in total budget
The demand of a commodity having many substitutes is
less elastic
more elastic
infinite elastic
zero elastic
Demand is a function of
quantity
none
supply
price
Which of the following is a demand function?
5P – Q = 4
Q = 35 + 3P
Q + 4P = 20
Q – 2P – 15 =0
Continue Reading Go to Next Page
Google Ads