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51.

Contraction of demand is the result of:

A.	Decrease in the number of consumers	B.	Increase in the price of the commodity concerned
C.	Increase in the prices of other goods	D.	Decrease in the income of purchasers

52.

All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?

A.	The preferences of the individual	B.	His monetary income
C.	The price of the commodity under consideration	D.	The prices of other goods

53.

Which of the following pairs of commodities is an example of substitutes?

A.	Tea and sugar	B.	Tea and coffee
C.	Pen and ink	D.	Shirt and trousers

54.

In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be:

A.	0	B.	1
C.	1.5	D.	2

55.

The Law of Demand, assuming other things to remain constant, establishes the relationship between:

A.	Income of the consumer and the quantity of a commodity demanded by him	B.	Price of a commodity and the quantity demanded
C.	Price of a commodity and the demand for its substitute	D.	Quantity demanded of a commodity and the relative prices of its complementary goods

56.

Identify the factor which generally keeps the price-elasticity of demand for a commodity now:

A.	Variety of uses for that commodity	B.	Its low price
C.	Close substitutes for that commodity	D.	High proportion of the consumer's income spent on it

57.

Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price:

A.	Equal to one	B.	Greater than one
C.	Small than one	D.	Zero

58.

In the case of an inferior good, the income elasticity of demand is:

A.	Positive	B.	Zero
C.	Negative	D.	Infinite

59.

In respect of which of the following category of goods is consumer's surplus highest?

A.	Giffen goods	B.	Necessities
C.	Luxuries	D.	Prestige goods

60.

Total utility is maximum when:

A.	Marginal utility is zero	B.	Marginal utility is at its highest point
C.	Marginal utility is equal to average	D.	Average utility is maximum