Economics MCQS with Answers 1st Year Chapter 4

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Economics MCQS with Answers 1st Year

Income elasticity of demand for normal good is always
more than one

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

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

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

Which of the following is a demand function?
5P – Q = 4
Q = 35 + 3P
Q + 4P = 20
Q – 2P – 15 =0

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