Economics MCQS with Answers 1st Year Chapter 4

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Economics MCQS with Answers 1st Year

When the price of a product falls and as a concequence the demand for the product increase. it will be.
Extension of demand
Rise of demands
Contraction on demand
Fall of demand

Normally a demand curve will have the shape
downward sloping
upward sloping

If demand is unitary elastic, a 25% increase in price will result in
no change in quantity demanded
25% decrease in quantity demanded
25% change in total revenue
1% decrease in quantity demanded

One of the following will not cause a rise and fall on demand.
Change in income
Discovery of a substitute
Distribution of income remaining the same
Change in weather

One of the following is not an exception the law of demand.
Very high price products
Ignorance of consumers
Very low price products
Non of the above

When demand is perfectly inelastic, an increase in price will result in
increase in total revenue
decrease in quantity demanded
decrease in total revenue
no change in total revenue

If demand is inelastic, a change in the price
will change total revenue in same direction
will not change quantity
will change the quantity in same direction
will change total revenue in the opposite direction

A seller can increase his sales revenue by charging a lower price, if the demand has
e > 1
e < 1
e = 0
e = 1

If quantity demanded is completely unresponsive to changes in price, demand is
perfectly inelastic
unit elastic

If price and total revenue move in the same direction, then demand is
perfectly elastic

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