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21. |
When price elasticity of demand for normal goods is calculated, the value is always: |
A. |
Positive |
B. |
Negative |
C. |
Constant |
D. |
Greater than one |
Answer: Option B
Explanation:
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22. |
Income elasticity of demand for normal good is always: |
A. |
1 |
B. |
More than one |
C. |
Negative |
D. |
Positive |
Answer: Option D
Explanation:
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23. |
Demand is a function of: |
A. |
Price |
B. |
Quantity |
C. |
Supply |
D. |
None of these |
Answer: Option A
Explanation:
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24. |
If price and total revenue move in the same direction, then demand is: |
A. |
Inelastic |
B. |
Elastic |
C. |
Unrelated |
D. |
Perfectly elastic |
Answer: Option A
Explanation:
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25. |
What does price elasticity of demand measure? |
A. |
Change in price caused by changes in demand |
B. |
The rate of change of sales |
C. |
The responsiveness of demand to price changes |
D. |
The value of sales of a given price |
Answer: Option C
Explanation:
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26. |
Which one is the assumption of law of demand? |
A. |
Price of the commodity should not change |
B. |
Quantity demanded should not change |
C. |
Income of the consumer should not change |
D. |
None of these |
Answer: Option C
Explanation:
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27. |
Which one is increasing function of price: |
A. |
Demand |
B. |
Utility |
C. |
Supply |
D. |
Consumption |
Answer: Option C
Explanation:
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28. |
It describes the law of supply: |
A. |
Supply curve |
B. |
Supply schedule |
C. |
Supply equation |
D. |
All the three |
Answer: Option D
Explanation:
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29. |
Supply curve will shift when: |
A. |
Price falls |
B. |
Price rises |
C. |
Demand shifts |
D. |
Technology change |
Answer: Option D
Explanation:
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30. |
An increase in demand would cause supply curve to: |
A. |
Shift to the left |
B. |
Shift to the right |
C. |
Change in slope of supply curve |
D. |
No effect on supply |
Answer: Option D
Explanation:
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