Economics MCQS with Answers 1st Year Chapter 6

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Economics MCQS with Answers 1st Year

Market Price of Perishable
None of these

Price of a product is determined in a free market
by both demand and supply
by demand for the product
by the government
by supply of the product

A decrease in demand causes the equilibrium price to
remain constant

Market equilibrium means a situation where
Qs= Qd
Qd= Qp
Qs= Qp
Qq= Qp

Demands and supply curves cross at
at 90 degree
always at 60 degree
at equal angle
at any angle

In case of a fall in supply.
Quantity supplied rises at the same price.
Quantity supplied falls at the same price.
Quantity supplied remain at the lower price.
None of the three

The price and sales of sugar both increase. What could be the cause of this?
An increase in the wages of workers in the sugar industry
a decrease in the income of the consumers.
An increase in the price of sugar substitutes
a decrease in the tax on sugar

When demand is perfectly elastic, an increase in supply will result in
b and c above
increase in quantity sold
fall in price
decrease in quantity sold

Perfectly inelastic supply curve is:
Falls downward to the right
Parallel to horizontal axis
Rises upward to the right
Parallel to vertical axis

Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is
a surplus
a shortage
excess supply

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