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When price falls by 5% and demand increase by 6%, then elasticity of demand is________
a)Elastic
b)Inelastic
c)Unitary elastic
d)Zero |
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Elasticity between two points: a)Point elasticity b)Arc elasticity c)cross elasticity d)None |
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If income of a person increases by 10% and his demand for goods increases by 30%, income elasticity will be_______
a)Equal to one
b)Less than one
c)More than one
d)None of these |
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Which statement is true about the law of demand:
a)Income rises, demand rises
b)Price rises, demand rises
c)Price falls, demand falls
d)Price falls, demand rises |
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In which of the following cases the demand for goods tends to be less elastic?
a)Good is necessary
b)Time period is shorter
c)Number of close substitutes is less
d)All of the above |
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Normal goods have______.
a)Zero income elasticity
b)Negative income elasticity
c)Positive income elasticity
d)Infinite income elasticity |
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In case of inferior goods like bajra, a fall in its price tends to: a)Make the demand remain constant b)Reduce the demand c)Increase the demand d)Change the demand in an abnormal way |
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The demand of which type of goods do not decrease with increase in its price:
a)Comforts
b)Luxury
c)Necessities
d)Capital goods |
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Cross elasticity of demand in monopoly market is:- a)One b)Zero c)Infinite d)None Of the above |
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Which of the following elasticity of demand measures a movement along the demand curve rather than a shift in the curve?
a)Income elasticity of demand
b)Price elasticity of demand
c)Substitution elasticity of demand
d)None of these |
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In case of luxury goods, the income elasticity of demand will be_______
a)Zero
b)Negative but greater than one
c)Positive but greater than one
d)Positive but less than one |
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In expansion and contraction of demand______. a)Demand curve remains unchanged b)Demand curve changes c)Slope of the demand curve changes d)Both (a) and (c)above |
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Certain goods for which Quantity demanded decreases when Income Increases are called______.
a)Superior goods
b)Inferior goods
c)Prestige goods
d)Conspicuous |
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In case of an inferior good, the income elasticity of demand is:
a)Positive
b)Zero
c)Negative
d)Infinite |
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What is the value of elasticity of demand if the demand for the good is perfectly elastic?
a)0 b)1 c)Infinity d)Less than 0 |
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For what type of good does demand fall with a rise in income levels of households?
a)Inferior goods
b)Substitutes
c)Luxuries
d)Necessities |
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For a commodity with a unitary elastic demand curve if the price of the commodity rises, then the consumer's total expenditure on this commodity would:-
a)Increase b)Decrease c)Remains constant d)Either increase or decrease |
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Movement along the same demand curve shows:
a)Expansion of demand
b)Expansion of supply
c)Expansion and contraction of demand
d)Increase and decrease of demand |
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Demand for electricity power is elastic because_______ a)It is available at a very high price b)It is essential for life c)It has many uses d)It has many substitutes |
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Generally, when income of consumer increases, he goes in for superior goods, leading to a fall in demand for inferior goods. It means, income elasticity of demand is________
a)Less than 1
b)Unitary
c)Zero
d)Negative |
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