Economics MCQS with Answers 1st Year Chapter 6

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Economics MCQS with Answers 1st Year


When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be.
Equal to zero
Equal to unity
Less than unity
Greater than unity

Which one will be termed as supply of a product.
One ton rice offered for sale in market
One ton rice brought for sale in market at a certain price.
None of the three
One tone potato in cold storage

A change in price brings in quantity supplied. it will be.
Extension of supply
Rise in supply
Fall in supply
Contraction of supply

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then
price remains same
price will rise
price will fall
quantity rises

When price is fixed below equilibrium level, there will be
surplus commodity in the market
demand curve will shift
shortage of commodity in the market
supply curve will shift

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is
supply and demand both decrease equally
supply and demand both increase equally
supply decreases and demand increases
supply increases and demand decreases

An increases in the price of mutton provides information which
b and c of above
tells consumers to buy more mutton
tells consumers to buy more chicken
tells producers to produce more mutton

A rise in supply and demand in equal proportion will result in
increases in equilibrium price and no change in equilibrium quantity
increase in equilibrium price and decrease in equilibrium quantity
no change in equilibrium price and increases in equilibrium quantity
decreases in equilibrium price and increases in equilibrium quantity

When the supply curve of a product is parallel to the vertical axis, it would mean that;
Same quantities of a product are supplied at different price.
Different quantities of a product are supplied at the same price.
Different quantities of a product are supplied at different price.
None of three

Demand and supply forces determine market price
none of the above
in both markets
only in monopoly market
only in perfect competition

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