Economics MCQS with Answers 1st Year Chapter 5

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Economics MCQS with Answers 1st Year

In May 2012, firm was supplying 1000 kg of sugar at market price of Rs. 60/- per kg. During June 2012, firm’s supply of sugar had decreased to 900 kg at price Rs. 40/- per kg. These changes show that supply of sugar is
More elastic
Less elastic
Perfectly elastic
Perfectly inelastic

The composite demand for a product is generally:
Equal to zero
Equal to unity

Who present the Arc Elasticity formula for the measurement of elasticity of demand.
J.R. Hicks
R.G.D Allen

The price of a product double due to which its quantity demand falls to one half. The elasticity of demand for product will be:
Lass than unity
Equal to zero
Equal to unity
Greater than unity

An increases in demand would cause supply curve to
shift to the right
change in slope of supply curve
shift to the left
no effect on supply

With a fall in price quantity demand changes in such a way that total expenditure of the consumer remain constant, elasticity of demand will be.
Less than unity
Equal to zero
Greater than unity
Equal to unity

The elasticity of demand for a product is less than unity. Therefore, with a fall in its price, total expenditure of consumer will.
Remain the same

The elasticity f demand in case of substitute is called.
Priceelasticity of demand
Crosselasticity of demand
Income elasticity of demand
None of the three

In case of perfectly elastic demand curve, the demand curve will be parallel to the :
Horizontal axis
None of the above
Vertical Axis

Supply curve
is vertical in long run
is same in long and short run
is flatter in long run
is horizontal in both short and long run

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