Practice Test

Q1) Demand for a commodity refers to Show Answer

Q2) Contraction of demand is the result of Show Answer

Q3) 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 ? Show Answer

Q4) In economics, demand refers to Show Answer

Q5) Demand is a Show Answer

Q6) The consumer demand those goods which gave Show Answer

Q7) Example of substitutes can be Show Answer

Q8) Example of complements can be Show Answer

Q9) The law of demand refers to relationship between Show Answer

Q10) The law of demand assumes that the following is constant Show Answer

Q11) When price of z rises it causes an increase in demand for goods X then X & Z are Show Answer

Q12) When price of z rises then the quantity in demand of goods X reduces. what is the relationship between X & Z Show Answer

Q13) Market demand is derived from individual demand curve by Show Answer

Q14) When price of a good changes,it brings about Show Answer

Q15) When price of a related good or income or taste changes,it brings about Show Answer

Q16) Rise in demand at original price is called Show Answer

Q17) Decrease in demand is due to Show Answer

Q18) The minus sign in elasticity of demand indicates Show Answer

Q19) What is elasticity of demand in case of necessities & luxuries ? Show Answer

Q20) In the case of essential demand is infinity ,it is called Show Answer

Q21) In case of essential goods the elasticity of demand is Show Answer

Q22) What is it called when elasticity of demand is one ? What shape will the demand curve take ? Show Answer

Q23) When price & outlay moves in the same direction, it is case of Show Answer

Q24) When the price & outlay move in opposite direction it is case of Show Answer

Q25) The formula of arc elasticity demand is Show Answer

Q26) If there is no change in quantity demanded to any charge in price then elasticity of demand is & shape of demand curve is Show Answer

Q27) If income of a household rises by 30% & demand falls by 10% then value of income elasticity of demand is Show Answer

Q28) If income of a household rises by 35% & demand falls by 10% then value of income elasticity of demand is Show Answer

Q29) If price of burger rises by 20% & demand falls by 25% then demand for burger is Show Answer

Q30) When demand is elastic then percentage change in demand to a change in price is Show Answer

Q31) What is the relationship between two goods when cross elasticity is positive & when it is negative ? Show Answer

Q32) Calculate cross elasticity when quantity demanded of a ink pen rises by 30 % as price of ink falls by 10 % Show Answer

Q33) Calculate elasticity when price of ball pen falls by 10 % then demanded of a ink falls by 10 % Show Answer

Q34) A declines in the price of X by Rs.2 causes an increase of 10 units in demand which goes up to 60 units. The new price is Rs.18 .Calculate elasticity of demand Show Answer

Q35) As the prices of a commodity rises from Rs.10 to Rs.12 ,its demand falls from 100 units to 50 units .calculate elasticity of demand Show Answer

Q36) As a consumers' income rises from Rs.3,000 to Rs.3,600 , demand rises from 25 units to 30 units .calculate elasticity of demand Show Answer

Q37) Cross elasticity of demand denotes a change in demand for one good due to change in whose aspects of the other good Show Answer

Q38) In a straight line downward sloping demand curve ,the elasticity of demand becomes greater as price Show Answer

Q39) Which goods has income elasticity greater than one & which has less than zero Show Answer

Q40) In diagrammatic method the value of point elasticity of demand on price axis is Show Answer

Q41) Law of demand does not hold in case of Show Answer

Q42) When the no.of uses of the purchase goods is less price elasticity of demand is Show Answer

Q43) When more substitutes are available elasticity of demand is Show Answer

Q44) When elasticity of demand is measured in terms of its substitutes & complements ,it is called Show Answer

Q45) What kind of goods has elastic demand Show Answer

Q46) Demand theories gives what kind of explanation of law of demand Show Answer

Q47) Name the economists who developed marginal utility theory & indifference curve theory Show Answer

Q48) What kind of satisfaction is utility which a consumer derives when he is willing to spend money on a stock of commodity which has the capacity to satisfy his wants ? Show Answer

Q49) MU is calculated as Show Answer

Q50) When there is no consumption , what value TU & MU takes ? Show Answer

Q51) In marginal utility rationality means Show Answer

Q52) Cardinally means utility can be Show Answer

Q53) Law of diminishing marginal utility states that the consumer buys more units of a commodity Show Answer

Q54) Ordinarily means utility can be Show Answer

Q55) Higher the consumer surplus implies state of economy Show Answer

Q56) The slope of indifference curve called Show Answer

Q57) Slope of budget line is Show Answer

Q58) If the consumer prefers A to B & B to C , then he prefers A to C. It is called property of Show Answer

Q59) A series of indifferent curve is called Show Answer

Q60) Convexity means slope is Show Answer

Q61) Convex indifferent curve is explained by Show Answer

Q62) Budget line is called Show Answer

Q63) Constraints in which budget line is made are Show Answer

Q64) Consumer's equilibrium occurs when Show Answer

Q65) Consumer's equilibrium condition is written as Show Answer

Q66) For the consumer's equilibrium to be stable, the requirement is Show Answer

Q67) What shows all possible combinations of two goods that can be bought by the consumer ? Show Answer

Q68) When MU is zero , TU is Show Answer

Q69) Assumption of constant marginal utility of money means importance of money to the consumers Show Answer

Q70) When indifferent curve is straight downward sloping line, the two goods are Show Answer

Q71) If MRS was increasing ,what shape will indifference curve take ? Show Answer

Q72) L-shaped indifference curve exist in case two goods are Show Answer

Q73) At the point of consumer's equilibrium indifference curve & budget curve are Show Answer

Q74) Which assumptions implies the consumer aims at utility maximization ? Show Answer

Q75) Which assumptions states that if the consumer prefers A to B then he will not prefer B to A in another time period ? Show Answer

Q76) Consumer surplus is more in case of Show Answer

Q77) In economics supply means Show Answer

Q78) When state of technology improves supply will Show Answer

Q79) When govt. imposes taxes supply will Show Answer

Q80) When govt. grants subsidies, supply will Show Answer

Q81) Which law states direct relationship between price & quantity supply of a commodity ? Show Answer

Q82) If the producer expects an increase in price of goods in the near future ,then current supply will Show Answer

Q83) When price of good X changes ,it brings about what kind of change in supply ? Show Answer

Q84) Elasticity of supply for a positively sloping supply curve that starts from price axis is Show Answer

Q85) When prices rises, quantity supplied Show Answer

Q86) Change in factor other than the price of good cause Show Answer

Q87) The percentage change in quantity supplied due to percentage change in price is called Show Answer

Q88) In case of perfectly elastic supply the supply curve is Show Answer

Q89) 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 ; Show Answer

Q90) The law of Demand ,assuming other things to remain constant ,establish the relationship between : Show Answer

Q91) Identify the faster which generally keeps the price -elasticity of demand for a good low Show Answer

Q92) Identify the co-efficient of price -elasticity of demand when the % increase quantity of a good demanded is smaller than the % fall in its price : Show Answer

Q93) In the case of an inferior good,the income elasticity of demand is Show Answer

Q94) If the demand for goods is inelastic , an increase in its prices will cause the total expenditure of the consumer of the good to Show Answer

Q95) If regardless of changes in its price ,the quantity demanded of a good remain unchanged , then the demand curve for goods will be: Show Answer

Q96) The law of Demand is Show Answer

Q97) All the following are determinants of demand except ? Show Answer

Q98) A movement along the demand curve for soft drinks is the best described as : Show Answer

Q99) If the price of pepsi decreases relative to the price of Coke & 7-UP,the demand for : Show Answer

Q100) If a good is a luxury ,Its income elasticity of demand is Show Answer

Q101) The price of hot dogs increases by 22% and the quantity of hot dogs demanded falls by 25%. This indicates that demand for hot dogs is : Show Answer

Q102) If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%. The cross -price elasticity of demand between beef & chicken is Show Answer

Q103) Given the following four possibilities ,which one results in an increase in total consumer expenditure ? Show Answer

Q104) The price elasticity of demand for hamburger is Show Answer

Q105) The price elasticity of demand is defined as the responsiveness of Show Answer

Q106) Suppose the price of movies seen at a theater rise from Rs.120 per person to Rs.200 per person .The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons .What is the price elasticity of demand for movies ? Show Answer

Q107) Suppose a department store has a sale on its silverware.If the price of a plate-setting is reduced from Rs.300 to Rs.200 & the quantity demanded increases from 3000 plates to 5000 .What is the price elasticity of demand for silverware ? Show Answer

Q108) A discount store has a special offer on CD's .It reduces their from Rs.150 to Rs.100 .Suppose the store manager observes that the quantity demanded increases from 700 CD's to 1,300 CD's .What is the price elasticity of demand for CD's ? Show Answer

Q109) If the local pizzeria raises the price of a medium pizza from Rs.60 to Rs.100 & the quantity demanded falls from 700 pizza a night to 100 pizzas a night .What is the price elasticity of demand for pizza ? Show Answer

Q110) If electricity demand is inelastic ,& electric rates increase ,which of the following is likely to occur ? Show Answer

Q111) Suppose the demand for a meals at a medium-priced restaurant is elastic.If the management of the restaurant is considering raising prices ,it can expect a relatively Show Answer

Q112) Point elasticity is useful for which of the following situations Show Answer

Q113) A decrease in the price will result in an increase in total revenue if Show Answer

Q114) An increase in the price will result in an increase in total revenue if Show Answer

Q115) Demand for a good will tend to be more elastic if it exhibits which if the following characteristics ? Show Answer

Q116) Suppose a consumer 's income increases from Rs.30,000 to Rs.36,000 .As a result , the consumer increases her purchase of compact discs(CD's) from 25 CD's to 30CD's .What is the consumer's income elasticity of demand for CD's ? Show Answer

Q117) Total utility is maximum when Show Answer

Q118) Which one is not an assumption of the theory of demand based on analysis of difference curves? Show Answer

Q119) The consumer is in equilibrium at a point where the budget line Show Answer

Q120) An indifference curve slopes down towards right since more of one commodity and less of another result in Show Answer

Q121) Which of the following statements is incorrect ? Show Answer

Q122) The second glass of lemonade gives lesser satisfaction to a thirsty boy .This is a clear case of Show Answer

Q123) The consumer is in equilibrium when the following condition is satisfied Show Answer

Q124) In the case of giffen goods,the demand curve will be Show Answer

Q125) By the consumer surplus economists mean Show Answer

Q126) When economists speak of the utility of a certain good , they are referring to Show Answer

Q127) A vertical supply curve parallel to Y axis implies that the elasticity of supply is Show Answer

Q128) The supply of a good refers to Show Answer

Q129) An increase in the supply of a good is caused by Show Answer

Q130) Elasticity of supply refers to the degree of responsiveness of a good to changes in its Show Answer

Q131) A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is Show Answer

Q132) Contraction of supply is the result of Show Answer

Q133) Demand in economic sense means- Show Answer

Q134) The concept of demand demonstrates that- Show Answer

Q135) Demand concept explains the _____ behavior in response to change in price of a good. Show Answer

Q136) Individual Demand is also called- Show Answer

Q137) _____ means quantity demanded of a good by a single consumer at various prices per unit of time. Show Answer

Q138) _____ means the aggregates of the quantities demanded by all consumers in the market at different prices per unit of time. Show Answer

Q139) All but one are the factors which affect individual demand. Find the odd one out. Show Answer

Q140) _____ is a tabular presentation showing different quantities demanded by buyers at different levels of prices in a given period. Show Answer

Q141) A demand schedule is shown as- Show Answer

Q142) Market Demand is the sum total of- Show Answer

Q143) Demand of a good of several consumers when added together is called _____ demand. Show Answer

Q144) When a good can be used to satisfy two or more
wants, it is said to have ________ demand.
Show Answer

Q145) Indirect demand of a good is also known as _____ demand. Show Answer

Q146) Which of the following is a determinant of Individual Demand? Show Answer

Q147) Which of the following is NOT the determinant of demand? Show Answer

Q148) How are APPLES and ORANGES related when as a result of rise in price of Apples, demand for Oranges increases? Show Answer

Q149) If two goods are complementary then rise in the price of one results in- Show Answer

Q150) If the demand for CNG increases as price of petrol increases, the two goods are- Show Answer

Q151) Comforts lies between- Show Answer

Q152) When price of commodity rises, the Show Answer

Q153) An increase in the income of a consumer has _____ effect on demand in general. Show Answer

Q154) The demand for Scooter and petrol is an example of _____ demand. Show Answer

Q155) _____ goods are those goods which are used for the production of other goods. Show Answer

Q156) _____ goods are those which are used for final consumption. Show Answer

Q157) Bread, Milk, Ready made clothes, T.V., etc. are examples of _____ goods Show Answer

Q158) The goods which cannot be consumed more than once, like milk are known as _____ goods. Show Answer

Q159) _____ goods meets only our current demand. Show Answer

Q160) The goods which can be consumed more than once over a period of time are known as _____ goods. Show Answer

Q161) When demand of any good depends upon the demand of another good, it is said to have _____ demand. Show Answer

Q162) The total demand for steel in the country denotes _____ demand. Show Answer

Q163) If the demand for a product is independent of the demand for other goods, it is called as _____ demand. Show Answer

Q164) If the construction activity in housing sector,infrastructure, etc. rises, the demand for cement will _____ as it has _____ demand. Show Answer

Q165) Demand for steel produced by Tata Iron and Steel Company is an example of _____ demand. Show Answer

Q166) When demand of any good reacts immediately to price changes, income changes, etc. it is said to have _____ demand. Show Answer

Q167) A relative price is- Show Answer

Q168) The quantity demanded of a good or service is the amount that- Show Answer

Q169) Coca-Cola and Thumbs-Up are substitutes. A rise in the price of Coca-Cola will_____ the demand of Thumbs-Up and the quantity demanded of Thumbs-Up will Show Answer

Q170) If the price of Orange Juice falls, the demand for Apple Juice will _____ Show Answer

Q171) The demand for consumer goods is a _____ demand Show Answer

Q172) If the price of inferior goods fall, the demand for them will _____ Show Answer

Q173) The Law of Demand states _____relation between demand and price of a commodity. Show Answer

Q174) When total demand for a commodity whose price has fallen increases, it is due to- Show Answer

Q175) With a fall in the price of a commodity Show Answer

Q176) When we draw a market demand curve, we _____ Show Answer

Q177) A fall in price of a commodity leads to _____ Show Answer

Q178) If a fall in price of ‘y’ results in a decrease in the sale of V, the two good appear to be- Show Answer

Q179) Which of the following is not a complementary good for pen? Show Answer

Q180) ._____ goods are the goods which can be used
with equal case in place of each other. Show Answer

Q181) Which of the following pairs of goods are an example of substitutes? Show Answer

Q182) . When the price of a substitute of good 'X' falls, the demand for good 'X' Show Answer

Q183) If the demand rises with the rise in consumer's real income, such a good is called _____. Show Answer

Q184) Giffen goods are- Show Answer

Q185) As the consumer's income increases, the demand for necessaries of life will increase _____ to the increase in income. Show Answer

Q186) As the consumer's income increases, the demand for comforts and luxuries will increase _____ to the increase in income. Show Answer

Q187) During boom period in economy, the demand for goods in general _____ Show Answer

Q188) Larger the size of population of a country _____ is the demand for goods and services in general. Show Answer

Q189) . In case the consumer expects a steep rise in price of Potatoes in future, his current demand for it will Show Answer

Q190) All but one of the good's demand is not affected by changes in weather conditions- Show Answer

Q191) If the government increase the rate of indirect taxes on goods and services, the demand for then will _____ in general. Show Answer

Q192) If the government reduces the tax on any product, the demand for the product _____ in the short run. Show Answer

Q193) If the demand for petrol remains unchanged
with rise in its price, it means petrol is a
Show Answer

Q194) If quantity demanded of good 'X' is plotted against the price of its substitute good T', the demand curve will be- Show Answer

Q195) In case of normal goods the income effect is _____ Show Answer

Q196) Income effect on demand of a good is _____ Show Answer

Q197) The Law of Demand is explained by- Show Answer

Q198) The term “Ceteris Paribus� in the Law of Demand means- Show Answer

Q199) Which of the following is a variable and influencing factor in the Law of Demand? Show Answer

Q200) The Law of Demand refers to functional relation between- Show Answer

Q201) When the price of petrol goes up, demand for two-wheelers will- Show Answer

Q202) The phrase "Other things being equal� in the Law of Demand means- Show Answer

Q203) The total effect of price change of a good is- Show Answer

Q204) Substitution Effect subscribe to the inverse relation between Px and Qx in case of- Show Answer

Q205) Income Effect does not subscribe to the inverse relation between Px and Qx in case of- Show Answer

Q206) The Law of Demand will fail in case of inferior goods only if- Show Answer

Q207) The Law of Demand is a _____ statement. Show Answer

Q208) _____ refers to the effect of change in the price of a product on the consumer’s purchasing power. Show Answer

Q209) When the price of Thumbs-up falls, other things being constant, buyers substitute Thumbs-up for Coca-Cola. This is called- Show Answer

Q210) _____ refers to the buyer's reaction to a change in the relative prices of two products, keeping the total utility constant. Show Answer

Q211) The Law of Demand can be explained by- Show Answer

Q212) Consumers buy a good till Px = MUx. If the price falls, the consumer will reach equilibrium- Show Answer

Q213) “Petrol is becoming cheaper, yet the demand for cars is not rising�. This statement indicates that- Show Answer

Q214) Downward slope of the demand curve shows- Show Answer

Q215) In case of NORMAL GOODS, demand curve shows: Show Answer

Q216) Law of Demand fails in case of - Show Answer

Q217) In case of Giffen's Paradox, the slope of the demand curve is- Show Answer

Q218) A Giffen good is one for which a small change in price results in- Show Answer

Q219) The Law of Demand indicates the _____ Show Answer

Q220) In case of Giffen goods, demand varies _____ with the price. Show Answer

Q221) Analysis of the relationship between demand of a commodity and prices of related commodities is- Show Answer

Q222) _____ observed that when the price of inferior goods fall, the demand for such goods also fall. Show Answer

Q223) The Law of Demand was propounded by _____ in his book ‘Principles of Economics'. Show Answer

Q224) The tendency of low income group to imitate the consumption pattern of high income group is known as _____ effect. Show Answer

Q225) The Law of Demand is applicable for _____ Show Answer

Q226) When price changes and proportionate change in market demand is more than proportionate change in individual demand implies that the market demand curve is _____ than the individual demand curves. Show Answer

Q227) A positively sloped demand curve implies Show Answer

Q228) An increase in consumer's income will increase demand for a _____ but decrease demand for a _____. Show Answer

Q229) When the quantity of a good that a buyer demands rises when there is growth of purchases by other individuals, such an effect is called _____ Show Answer

Q230) . When the quantity of a commodity that an individual buyer demand falls in response to the growth of purchases by other buyers, such an effect is called _____. Show Answer

Q231) Some buyer’s demand more of certain commod- ities at a higher price, such an effect is called _____. Show Answer

Q232) The market demand curve in case of Veblen Effect is _____. Show Answer

Q233) The market demand curve in case of Bandwagon Effect is _____. Show Answer

Q234) The market demand curve in case of Snob Effect is _____. Show Answer

Q235) A downward sloping Engel Curve shows - Show Answer

Q236) Assume that the market demand curve for Dinshaw Ice cream is known and given to us. With summer setting in, price remaining the same the consumers would - Show Answer

Q237) An exceptional demand curve is one that slopes- Show Answer

Q238) What will be the impact on the demand curve of CARS when the price of petrol rises? Show Answer

Q239) What will be the impact on the demand curve of DESKTOP COMPUTERS when the price of LAPTOPS increase? Show Answer

Q240) What will be the impact on the demand curve of SUGAR with increase in its price? Show Answer

Q241) The demand for TROUSERS will lead to _____ due to change in the preference in favour of JEANS. Show Answer

Q242) The demand curve for BAJRA will _____ when a poor person's income rises. Show Answer

Q243) If more is demanded at the same price or the same quantity is demanded at a higher price, it is known as-




Show Answer

Q244) A downward movement along the same demand curve means - Show Answer

Q245) . A leftward shift of the demand curve shows- Show Answer

Q246) When same quantity of a good is demanded at a lower price, it is known as- Show Answer

Q247) When less quantity is demanded as the price of good rises, there is _____ Show Answer

Q248) The demand function of a commodity 'X' is given by Qx= 20-3 Px. What would be he value of Px when the corresponding value of Qx = 14. Show Answer

Q249) At a price of Rs. 10 p.u. the market demand of a commodity is 58 units, out of which consumer 'A' has purchased 20 units and consumer 'B' has purchased 10 units. How much quantity consumer 'C' has purchased? Show Answer

Q250) The linear demand function is given as- 0 = 80 - 20 P. Derive the market demand function when there are 100 consumers in the market. Show Answer

Q251) All but one can be referred as Variations in Demand. Which one is not variation in demand? Show Answer

Q252) In caseof Expansion and Contraction of Demand, the demand curve- Show Answer

Q253) A movement along the demand curve means- Show Answer

Q254) Change in the demand of a commodity due to the factors other than price is known as- Show Answer

Q255) Increase in demand leads to- Show Answer

Q256) Which of the following would result in the shifting of the demand curve? Show Answer

Q257) Shift in demand does not take place due to- Show Answer

Q258) A rightward shift in the demand curve for Bread would be predicted from- Show Answer

Q259) At what price no one would be willing to buy the commodity? Show Answer

Q260) If the commodity is given free i.e. if the demand is autonomous, what is the quantity demanded? Show Answer

Q261) If the price of the commodity falls down to Rs. 1, by how much will the quantity demanded change? Show Answer

Q262) The total quantity demanded when the price is Rs. 1 p.u. is- Show Answer

Q263) What would be the quantity demanded at a price of Rs. 3? Show Answer

Q264) What would be the price when quantity demanded is zero? Show Answer

Q265) What would be the quantity demanded when the price is zero? Show Answer

Q266) Other things being equal a decrease in demand can be caused by- Show Answer

Q267) A rational consumer is a person who- Show Answer

Q268) A normal demand curve of a commodity- Show Answer

Q269) If the quantity demanded of a commodity is plotted against the price of a substitute goods ceteris paribus the curve is expected to be- Show Answer

Q270) Income effect operates when there is an- Show Answer

Q271) Who explained the abnormal shape of demand curve for diamonds through the doctrine of conspicuous consumption? Show Answer

Q272) Conspicuous good are also known as- Show Answer

Q273) Elasticity of demand is defined as the responsiveness of the quantity demanded of a good to changes in- Show Answer

Q274) ._____ was the economist to formulate the concept of price elasticity of demand. Show Answer

Q275) The concept of Elasticity of Demand whenever referred unless otherwise specified always means- Show Answer

Q276) The concept of price elasticity of demand anal- yses- Show Answer

Q277) When there is no change in quantity demanded in response to any change in price, it is a situation of- Show Answer

Q278) Price Elasticity of Demand is defined as- Show Answer

Q279) Price Elasticity of Demand is given by- Show Answer

Q280) When percentage change demand is less than percentage change in price, demand is- Show Answer

Q281) When percentage change in demand is equal to percentage change in price, demand is- Show Answer

Q282) Price Elasticity of demand is always _____ because of _____ relationship between price and quantity demanded Show Answer

Q283) Coefficient of price elasticity of demand ranges from _____ to _____. Show Answer

Q284) When there is an infinite demand at a particular price and demand becomes zero with a slight rise in the price then _____ Show Answer

Q285) When percentage in quantity demanded is more than percentage change in price then _____ Show Answer

Q286) When demand curve is parallel to X-axis, elasticity of demand is- Show Answer

Q287) Which curve is called rectangular hyperbola? Show Answer

Q288) When demand curve is parallel to Y-axis, elasticity of demand is- Show Answer

Q289) . As the demand curve becomes flatter and flatter, the elasticity of demand becomes- Show Answer

Q290) When the demand for a commodity does not change with the increase in its price from Rs. 2 to Rs. 5, then elasticity of demand is _____ Show Answer

Q291) Slope of perfectly elastic demand curve is equal to _____ Show Answer

Q292) On all points of a rectangular hyperbola demand curve, elasticity of demand is - Show Answer

Q293) When slope of demand curve = 0, the elasticity of demand is- Show Answer

Q294) To say that the demand for a commodity is elastic means- Show Answer

Q295) A demand curve is perfectly inelastic if- Show Answer

Q296) When the demand curve is vertical straight line, demand is- Show Answer

Q297) For goods with perfectly inelastic demand- Show Answer

Q298) For goods with less elastic demand Show Answer

Q299) . If the demand of a commodity is less elastic the demand curve will be- Show Answer

Q300) Rectangular hyperbola is also called- Show Answer

Q301) If you spend more on rent than on soap, your price elasticity of demand for housing is likely to be- Show Answer

Q302) The demand for common salt has low price elasticity because- Show Answer

Q303) The devaluation of currency would increase the export earnings only when demand for the nation's exports in foreign market is- Show Answer

Q304) The demand for sugar and tea is usually: Show Answer

Q305) Availability of close substitutes makes the demand. Show Answer

Q306) Elasticity is greater than unity for- Show Answer

Q307) Complementary goods exhibit _____ elasticity of demand. Show Answer

Q308) All but one of the following commodities has elastic demand. Which one has inelastic demand? Show Answer

Q309) Demand is _____ in the long period than in the short period Show Answer

Q310) The demand for necessities is _____ Show Answer

Q311) Which of the following helps the manager to estimate the demand of a commodity? Show Answer

Q312) The price elasticity of demand for a face cream is estimated to be ONE, no matter what the price or quantity demanded. In this case- Show Answer

Q313) If demand is _____then price cuts will _____ spending. Show Answer

Q314) If a 10% rise in the price of a commodity causes the demand to fall by 20% Show Answer

Q315) On typical straight line demand curve, the elasticity of demand at a point where it meets the j price axis is- Show Answer

Q316) On a straight line demand curve the elasticity of demand at the mid-point of the curve is- Show Answer

Q317) To measure price elasticity over large changes in price we use _____ Show Answer

Q318) When the price of Good ‘X’ goes up by 10% its demand falls from 800 units to 600 units. What is the price elasticity of Good ‘X? Show Answer

Q319) The demand by a consumer for a commodity falls by 10% when its price increases from Rs. 5 to Rs. 6 per unit. What is the price elasticity of demand? Show Answer

Q320) 30 units of a commodity is purchased by a consumer at the price of Rs. 46 per unit. When the price rises to Rs. 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- Show Answer

Q321) A consumer spends Rs. 40 on a good at a price of Rs. 1 per unit and Rs. 60 at a price of Rs. 2 per unit. The elasticity of demand is- Show Answer

Q322) A consumer buy 20 units of a good at Rs. 10 p.u. The price elasticity of demand of this good is -1. How much quantity would be demanded by the consumer when the PRICE FALLS to Rs. 8 p.u.? Show Answer

Q323) Demand for good 'X' is perfectly inelastic. What will be the change in demand if price falls from Rs. 10 per unit to Rs. 5 per unit? Show Answer

Q324) What happens to total expenditure on a commodity when its price falls and its demand is price elastic? Show Answer

Q325) As the price of a product falls by 7%, the total expenditure on it has gone up by 3.5%. The elasticity of demand of this product is- Show Answer

Q326) The demand of a commodity was 100 units initially. With the rise in price by Rs. 5, the quantity demanded falls by 5 units. Elasticity of demand is 1.2. Find out the price BEFORE the change in demand Show Answer

Q327) Regardless of changes in its price, if the quantity demanded of a good remains constant, then the demand curve for the good will be- Show Answer

Q328) The total revenue of the seller will increase with a fall in price if- Show Answer

Q329) Point elasticity is useful for which of the following situations? Show Answer

Q330) If there are finite change in price and quantity demanded over a stretch on the demand curve, it is called- Show Answer

Q331) The formula used in the Arc Elasticity method is- Show Answer

Q332) When price elasticity at a single point on a demand curve is measured, we use _____ Show Answer

Q333) The exact and precise co-efficient of elasticity cannot be found by _____ method. Show Answer

Q334) _____ method only classifies elasticity into elastic,inelastic or unitary elastic. Show Answer

Q335) Slope of a demand curve may remain constant but elasticity still can does change. This is- Show Answer

Q336) Let slope of demand curve = -0.5. The elasticity of demand will be _____ if initial price is Rs.20 per unit and initial quantity is 50 units of the commodity. Show Answer

Q337) What is the price of the commodity when Quantity Demanded is 20 units? Show Answer

Q338) . What is the price of the commodity when the Quantity Demanded is 30 units? Show Answer

Q339) Using percentage method, the price elasticity of demand is- Show Answer

Q340) Life saving drugs has _____ demand. Show Answer

Q341) The price elasticity of demand is 0.5. The percentage change in quantity is 4. What is the percentage in price? Show Answer

Q342) When price of a commodity gets doubled, its quantity demanded is reduced to half. The coefficient of price elasticity of demand will be - Show Answer

Q343) The price elasticity of demand for good 'X' is twice that of good 'Y'. Price of 'X' falls by 5% while that of good 'Y' rises by 5%. The percentage change in the quantities demanded of X and Y will be- Show Answer

Q344) A consumer buys a certain quantity of a good at a price of Rs. 10 per unit. When the price falls to Rs. 8 per unit, he buys 40% more quantity. The price elasticity of demand will be- Show Answer

Q345) At a price of OP the total expenditure of the consumer is- Show Answer

Q346) All demand curves but one indicate same elasticity of demand at all their points- Show Answer

Q347) The point where the downward sloping straight line demand curve intercept the horizontal axis,price elasticity of demand is _____ because price at the point is _____ Show Answer

Q348) If the price elasticity of demand is ZERO, it on the commodity may _____ with the change in price of the commodity. Show Answer

Q349) The price elasticity of demand is higher, when the price of the commodity is- Show Answer

Q350) If 10% increase in price of good 'X' causes a 10%increase in expenditure on good 'X’, elasticity of demand is equal to _____ Show Answer

Q351) Price of the commodity increases from Rs. 10 to Rs. 12 per unit and expenditure on the commodity increases by 20%, elasticity of demand would be- Show Answer

Q352) The income elasticity of demand in case of an inferior good is- Show Answer

Q353) If a good is a luxury, its income elasticity of demand is- Show Answer

Q354) When a given change in income does not lead to any change in the quantity demanded, it is called
as-
Show Answer

Q355) The goods having zero income elasticity of demand are called _____ goods. Show Answer

Q356) As income rises, the consumer will go in for superior goods and as a result the demand for inferior goods will fall. This implies- Show Answer

Q357) Firms that supply products with higher income elasticity of demand can expect _____ as the economy grows. Show Answer

Q358) Firms that supply products with relatively low in come elasticity of demand experience _____ in an economic downturn. Show Answer

Q359) Which one of the following is income inelastic product/service? Show Answer

Q360) The responsiveness of demand of a commodity to the change in income is known as- Show Answer

Q361) The responsiveness of the change in quantity demanded of one commodity due to a change in the price of another commodity is known as- Show Answer

Q362) Cross elasticity of demand between two perfect substitutes will be- Show Answer

Q363) Complementary goods like tea and sugar havea _____ cross elasticity of demand. Show Answer

Q364) If the price of corn rises, other things being the same, the consumers will spend _____ on corn Show Answer

Q365) The above information shows that wheat and corn are _____ Show Answer

Q366) If income rises, the share of income spent on corn will- Show Answer

Q367) If the amounts of two goods purchased increase or decrease simultaneously when the price of one changes, then the cross elasticity of demand between then is- Show Answer

Q368) Of the following commodities, which has the lowest elasticity of demand? Show Answer

Q369) Suppose your income increases by 20% and demand for a commodity increases by 10%, then the income elasticity of demand is- Show Answer

Q370) Which of the following does not have uniform elasticity of demand at all points? Show Answer

Q371) A negative income elasticity of demand for a commodity indicates that as income falls the amount of commodity purchased- Show Answer

Q372) In which case the elasticity shown by different points of a curve is the same?
(a) A rectangular hyperbola curve
Show Answer

Q373) "The proportional change in quantity purchased divided by the proportional change in price�. The quotation is given by- Show Answer

Q374) If the quantity demanded of a commodity is plotted against the price of a substitute goods, the curve is expected to be- Show Answer

Q375) Cross elasticity of demand between petrol and automobiles is- Show Answer

Q376) There are two goods 'X' and 'Y\ The cross elasticity of demand for ‘X’ with respect to price of 'Y' is greater than zero, they are- Show Answer

Q377) If two demand curves are shooting downward from the same point, then- Show Answer

Q378) If income elasticity for the household for good A is 2, then the good is- Show Answer

Q379) In the figure above elasticity of demand at point 'D’is- Show Answer

Q380) Price at point ‘B’ price is _____ and there foreelasticity of demand is _____. Show Answer

Q381) The elasticity of demand at point 'A' is- Show Answer

Q382) In the figure above, for a given fall in price to P1, the change in quantity is highest in case of- Show Answer

Q383) Of the three demand curves highest elasticity is denoted by- Show Answer

Q384) If the quantity demanded of a commodity is plotted against the price of a complementary good, the demand curve will be- Show Answer

Q385) Income of a household rises by 10% and its demand for jawar falls by 4%. In this case jawar is _____ good. Show Answer

Q386) If Cross Elasticity of Demand is equal to Zero, it means that the goods are- Show Answer

Q387) Want satisfying power of a commodity is called- Show Answer

Q388) Utility depends on the _____ of a want. Show Answer

Q389) All but one are the commodities that have both utility and usefulness except- Show Answer

Q390) Utility is- Show Answer

Q391) Utility may be defined as- Show Answer

Q392) The utility of a commodity is _____ Show Answer

Q393) Utility is measured in terms of- Show Answer

Q394) Utility is- Show Answer

Q395) The cardinal approach postulates that utility can be _____ Show Answer

Q396) Cardinal Utility Theory is associated with- Show Answer

Q397) Cardinal Utility approach is also known as- Show Answer

Q398) Marginal Utility Approach is also called- Show Answer

Q399) According to marginal utility analysis, utility can be measured as- Show Answer

Q400) Cardinal measure of utility is required in- Show Answer

Q401) Which of the following approaches uses MONEY as a measuring rod of utility- Show Answer

Q402) Which of the theories is applicable under Cardinal Approach to Utility? Show Answer

Q403) All but one are the assumptions of the Cardinal Utility Theory. Which one is not the assumption? Show Answer

Q404) Which of the following assumptions ignores the presence of complementary and substitute goods in Cardinal Utility Theory? Show Answer

Q405) The price that a consumer is ready to pay for a commodity represents the utility he is expecting from the commodity means- Show Answer

Q406) Consumer makes all calculations carefully and then purchase the commodities in order to maximize his utility means consumer is- Show Answer

Q407) Which of the following statements regarding ordinal utility is true? Show Answer

Q408) The cardinal approach to utility assumes marginal utility of money is- Show Answer

Q409) ._____ is the sum total of the utility derived from additional units of a commodity Show Answer

Q410) ._____ is the addition made to the total utility by the consumption of additional unit of a commodity Show Answer

Q411) Marginal Utility can be stated by- Show Answer

Q412) Utility of a good can be termed as the _____ Show Answer

Q413) Marginal Utility- Show Answer

Q414) Total Utility can be calculated as- Show Answer

Q415) When only ONE unit of the commodity is consumed- Show Answer

Q416) When marginal utility is negative, total utility is- Show Answer

Q417) When total utility is maximum, marginal utility becomes- Show Answer

Q418) Total Utility is _____, when marginal utility ispositive Show Answer

Q419) When TU is increasing at a diminishing rate, MU must be- Show Answer

Q420) MU of a particular commodity at the point of saturation is- Show Answer

Q421) Which of the following equation is incorrect? Show Answer

Q422) The rate of which TU changes is indicated by Show Answer

Q423) With the increase in consumption by ONE unit of the commodity, TU increases from 120 to 150, then marginal utility is- Show Answer

Q424) The shape of MU curve is- Show Answer

Q425) TU starts diminishing when- Show Answer

Q426) TU curve- Show Answer

Q427) MU curve will be below X-axis when- Show Answer

Q428) What is called the point of satiety? Show Answer

Q429) states that marginal utility of a good diminishes as the consumer consumers additional units of a good. Show Answer

Q430) MU curve of a consumer is also his _____ Show Answer

Q431) _____ curve is the slope of the TU curve. Show Answer

Q432) At saturation point the slope of total utility curve is _____. Show Answer

Q433) Constant Marginal Utility of Money means, _____ Show Answer

Q434) A curve which first move upwards then downwards is naturally _____ Show Answer

Q435) The paradox of value means that- Show Answer

Q436) The value paradox (diamond and water paradox) arises because- Show Answer

Q437) In ONE COMMODITY, case, the consumer is at equilibrium when- Show Answer

Q438) Marginal Utility of a commodity depends on its quantity and is - Show Answer

Q439) Which of the following is NOT an assumption of Law of Diminishing Marginal Utility? Show Answer

Q440) MU of one commodity has no relation with MU of another commodity implies- Show Answer

Q441) Consumer in consumption of single commodity ‘X’ will be at equilibrium when- Show Answer

Q442) If MUx >Px , then consumer- Show Answer

Q443) Suppose that an ice-cream is sold for Rs. 30. Ritu has already eaten 3 ice-creams. Her MU from eating the 3rd ice-cream is 90 utils. MU of Rs. 1 is 3 utils. Should she eat more ice-creams or stop? Show Answer

Q444) If one burger give you satisfaction of 15 utils and two burgers give total satisfaction of 25 utils, then the marginal utility of second burger is- Show Answer

Q445) _____ refers to a situation when a consumer maximizes his satisfaction with his limited income. Show Answer

Q446) The general condition of consumer's equilibrium with respect to any particular product is- Show Answer

Q447) The consumer is in equilibrium and is consuming good-X only. The MU from last unit of good X consumed is 50 utils and Mu = 10. What is the price of good X? Show Answer

Q448) The principal limitation of utility analysis relates to the basic assumption that utility can be expressed in terms of- Show Answer

Q449) Marginal Utility theory is based, on _____ from a good. Show Answer

Q450) Which one of the following is the ODD one? Show Answer

Q451) Which statement is correct in connection with utility?
Show Answer

Q452) The excess of the price which a person would be willing to pay rather than go without the thing over that he actually does pay is called- Show Answer

Q453) The doctrine of consumer’s surplus is based on _____ Show Answer

Q454) The term optimum allocation of consumer’s expenditure on different goods and services is used in- Show Answer

Q455) Buyer’s surplus is highest in the case of _____ Show Answer

Q456) In the above figure, the total utility is represented by the area Show Answer

Q457) In the above figure, the given price is_____ and the consumer for OQ amount of commodity spends a total amount of money equal to the area _____ Show Answer

Q458) In the above figure, the consumer's surplus is shown by the area- Show Answer

Q459) The concept of consumer’s surplus is useful in _____ Show Answer

Q460) Amit divides his income entirely between Good X and Good Y. He allocates his income between these two goods is such a way that he maximizes his satisfaction. His MU from extra unit of Y is 4 Utils and the price of Y is Rs. 40. If the price of X is Rs. 80, how much of X good he consumes per day? Show Answer

Q461) A free good is plentiful so as to have no price,will be used up to the point where its marginal utility is _____ Show Answer

Q462) The more rapidly the marginal utility of additional units of a good falls, the _____ will be the elasticity of demand Show Answer

Q463) In which of the following fields the concept of consumer’s surplus is useful? Show Answer

Q464) An example of a commodity having consumers surplus is _____ Show Answer

Q465) Consumer’s surplus means- Show Answer

Q466) Consumer’s surplus is measured with the help of _____ Show Answer

Q467) The area of consumer's surplus is correctly shaded in _____ Show Answer

Q468) How many units of X and Y the consumer will buy in order to maximize utility? Show Answer

Q469) What will be the total utility received by the consumer from the two commodities? Show Answer

Q470) How much of total income will the consumer spend on good X and good Y? Show Answer

Q471) When the price of both the commodities is same, the consumer attains maximum satisfaction where Show Answer

Q472) A consumer will purchase more of Good-x than Good-Y, only when: Show Answer

Q473) A locus of constant utility is called the Show Answer

Q474) An indifference curve is _____ Show Answer

Q475) . The slope of indifference curve show- Show Answer

Q476) At a point near the right hand below corner of a indifference curve, the MRS of commodity ‘X' for commodity 'Y' is- Show Answer

Q477) As one moves upward towards left along an indifference curve, the MRS of commodity 'X’ for commodity 'Y'- Show Answer

Q478) A higher IC denotes Show Answer

Q479) Which of the following is not a characteristics of the indifference curve- Show Answer

Q480) IC theory assumes that- Show Answer

Q481) An IC shows all combinations of two commodities which- Show Answer

Q482) The slope of IC tends to diminish as we move down the curve means- Show Answer

Q483) Marginal rate of substitution of 'X' for 'Y' is calculated as- Show Answer

Q484) In an indifference map, higher IC indicates: Show Answer

Q485) MRS is determined by- Show Answer

Q486) A set of ICs drawn in a graph is called- Show Answer

Q487) An IC is convex to origin because of- Show Answer

Q488) Marginal Rate of Substitution indicates the slope of- Show Answer

Q489) The slope of IC is different at different points of the curve Show Answer

Q490) Only one IC will pass through a given point on an indifference map implies that- Show Answer

Q491) On an indifference curve, the MRS falls when- Show Answer

Q492) Should a consumer move upward along an IC, his total utility- Show Answer

Q493) Which of the following is not an assumption of ordinal utility analysis? Show Answer

Q494) All points on the same IC represent- Show Answer

Q495) IC approach deals with- Show Answer

Q496) If two goods were perfect substitutes of each other, the IC will be- Show Answer

Q497) In the case of two perfect substitute goods, the IC will be- Show Answer

Q498) If a consumer has monotonic preferences, which bundle will he choose? Show Answer

Q499) If a consumer has monotonic preferences how would he rank his preference over the bundles (10,9); (9,9) (10,10)- Show Answer

Q500) When an IC is L shaped, then two goods will be- Show Answer

Q501) The Other name associated with ordinal approach apart from R.G.D. Allen and J.R. Hicks is Show Answer

Q502) ._____ depicts complete scale of consumer's tastes and preferences. Show Answer

Q503) One combination can lie only on one IC means- Show Answer

Q504) When the quantity of one good is increased in the combination, the quantity of other is reduced to maintain same level of satisfaction. This means that IC is _____ Show Answer

Q505) When the combinations on a IC do not represent same level of satisfaction, it means IC is _____ Show Answer

Q506) _____is a graphical representation of all possible combination of two goods which can be purchased given income and prices. Show Answer

Q507) If a combination is below the Budget Line, it indicates that there is- Show Answer

Q508) All combinations that lie on the budget line are _____ Show Answer

Q509) Each point on the budget line shows- Show Answer

Q510) A shift of the budget line, when prices are constant, is due to- Show Answer

Q511) Slope of budget line is indicated by- Show Answer

Q512) The budget line of a consumer in the analysis of IC is- Show Answer

Q513) The budget line is not known as- Show Answer

Q514) When the prices of both Good-X and Good-Y change by same percentage, a rise in price will- Show Answer

Q515) If the budget line does not shift it means- Show Answer

Q516) If price of Goods-X falls and price of Good-Y rises then budget line will- Show Answer

Q517) If the consumer spends the entire money income to buy only Good-X, how much quantity he can buy of it? Show Answer

Q518) If the consumer spends the full income only to buy Good-Y, how much quantity he would be able to buy of it- Show Answer

Q519) The slope of the budget line is- Show Answer

Q520) A consumer can buy 6 units Good-X and 8 units of Good-Y if he spends his entire income. The prices of the two goods are Rs. 6 and Rs. 8 respectively. What is the consumer's income. Show Answer

Q521) Ravi consumes Apples and Bananas whose price are Rs. 6 and Rs. 3 p.u. respectively. If he is in the state of equilibrium, the value of marginal rate of substitution is- Show Answer

Q522) A budget constraint line is a result of _____ Show Answer

Q523) The budget line equation is- Show Answer

Q524) The consumer will maximize his satisfaction and will be at equilibrium where- Show Answer

Q525) How many indifference curves can touch the price line Show Answer

Q526) The point where the budget line is tangent to an IC- Show Answer

Q527) Maximization of total utility is an assumption of a consumer in an analysis that is- Show Answer

Q528) A consumer is in equilibrium at the point of tangency of his IC and the price line, because- Show Answer

Q529) Which of the following conditions is necessary for utility to be maximum? Show Answer

Q530) The consumer is not at equilibrium at point C, since- Show Answer

Q531) MRSxy 439. The consumer is at equilibrium at point E, since-
Show Answer

Q532) The situation of a consumer is better when- Show Answer

Q533) Which of the following bundles a consumer would be able to buy- Show Answer

Q534) What will be the MRSxy when the consumer is at equilibrium- Show Answer

Q535) At the point of equilibrium on Indifference Curve- Show Answer

Q536) In case of IC approach, an income effect means- Show Answer

Q537) In the case of substitution effect in IC approach, the consumer moves Show Answer

Q538) 1C is downward sloping from left to right since more X and less Y gives- Show Answer

Q539) In economics, supply means- Show Answer

Q540) Which of the following is not true in case of supply? Show Answer

Q541) When price rises, quantity supplied- Show Answer

Q542) Which of the following statement is correct? Show Answer

Q543) The supply of good refers to- Show Answer

Q544) According to law of Supply Show Answer

Q545) ._____ shows the quantity of goods a producer or seller wishes to sell at a given price level Show Answer

Q546) The supply curve slopes- Show Answer

Q547) Graphical presentation of supply curve of an individual firm in the market is called- Show Answer

Q548) Movement along the supply curve occurs due to- Show Answer

Q549) Supply curve shifts rightward due to- Show Answer

Q550) Expansion of supply takes place due to- Show Answer

Q551) If producer expects an increase in price of goods in the near future, then current supply will: Show Answer

Q552) When more units of the good are supplied at a higher price, it is called- Show Answer

Q553) When supply price increases in the short run, the profit of the producer Show Answer

Q554) The long-run supply curve of a diminishing cost industry is- Show Answer

Q555) The law of supply does not apply to- Show Answer

Q556) When supply falls due to factors other than own price of the commodity, it means- Show Answer

Q557) In case of contraction of supply, there is- Show Answer

Q558) In case of increase in supply, there is Show Answer

Q559) Imposition of a unit tax, shifts the supply curve- Show Answer

Q560) Due to incentives like tax holiday, subsidies which reduces the cost of production, the supply quantity will- Show Answer

Q561) In case of failure of rains, floods, etc. the supply of agricultural goods will- Show Answer

Q562) The percentage change in quantity supplied due to percentage in price is called- Show Answer

Q563) When supply curve is a vertical straight line,it indicates _____ supply Show Answer

Q564) A straight line supply curve passing through origin forming 50° indicates Show Answer

Q565) In case of perfectly elastic supply the supply curve is- Show Answer

Q566) Supply is relatively elastic in- Show Answer

Q567) When supply curve is parallel to X-axis, elasticity of supply is- Show Answer

Q568) If the co-efficient of elasticity of supply is 0.6, the supply is- Show Answer

Q569) When upward sloping straight line curve shoots up from quantity axis, it implies- Show Answer

Q570) Elasticity of supply for a positively sloped supply that shoots from origin _____ Show Answer

Q571) The supply of perishable goods is- Show Answer

Q572) The supply function of a commodity is given by - Q = 20 + 3 Px. If the price is Rs. 6, the quantity supplied is- Show Answer

Q573) How much quantity is supplied at a price of Rs. 10? Show Answer

Q574) At which price, the supply would be zero? Show Answer

Q575) Calculate the price at which the firm is willing to supply 100 units Show Answer

Q576) When price of a commodity falls by 20%, the quantity supplied falls by 25%, the price elasticity of supply is- Show Answer

Q577) A vegetable vendor sells 80 quintals of potatoes at a price of Rs. 4 p. kg. The elasticity of supply of potatoes is known to be 2. How much quantity will he sell at Rs. 5 p. kg.? Show Answer

Q578) When the price of a good rises from
Rs. 15pu to Rs. 19pu, its quantity supplied increases from 75 units to 95 units. The price elasticity of supply is- Show Answer

Q579) Total revenue of a firm rises from Rs. 50 to Rs. 100 when the price rises from Rs. 5 pu to Rs. 10 pu. The co-efficient of Es = Show Answer

Q580) The price of a commodity doubles, to its response the quantity supplied increases 4 times of original quantity supplied. The co-efficient of price elasticity of supply is- Show Answer

Q581) A price of Rs. 10 p.u. the quantity supplied is 500 units. If the price falls by 10% and quantity supplied falls to 400 units, the co-efficient of price elasticity of supply is- Show Answer

Q582) . Market forces refer to- Show Answer

Q583) Supply is the- Show Answer

Q584) In a very short period the supply- Show Answer

Q585) If the demand is more than supply, then the pressure on price will be- Show Answer

Q586) A perfectly inelastic supply curve shooting up from X-axis shows- Show Answer

Q587) What is incorrect about advertisement elasticity? Show Answer

Q588) . All but one are correct about demand forecasting. Which one is not correct? Show Answer

Q589) The burden of forecasting is put on customers in _____ method of demand forecasting Show Answer

Q590) The burden of forecasting is put on customers in _____ method of demand forecasting Show Answer

Q591) Delphi technique was developed by- Show Answer

Q592) Collective opinion method of demand forecasting is useful for ------------ forecasting. Show Answer

Q593) ._____ method of forecasting is useful in useof capital goods. Show Answer

Q594) Which of the following affect the demand for non-durable consumer goods? Show Answer

Q595) What would be the shape of the supply curve of T-shirts, if the seller offers to sell any number of T-shirts at Rs. 250? Show Answer

Q596) All the following factors affect the demand for durable consumer goods except- Show Answer

Q597) ._____is considered as a ‘naive’ approach to demand forecasting. Show Answer

Q598) Short-term demand forecasting is useful for- Show Answer

Q599) A firm planning capacity expansion and diversification will go in for— Show Answer

Q600) The study of the nature of consumer preferences and the effect of changes in the determinants of demand is called Show Answer

Q601) Demand analysis means Show Answer

Q602) When Economists speak of the Utility of a certain product, they are referring to Show Answer

Q603) Utility may be defined as Show Answer

Q604) Which of the following statements regarding Utility is not true? Show Answer

Q605) Utility is a Show Answer

Q606) Utility Show Answer

Q607) Utility is applicable Show Answer

Q608) Utility can be measured and quantified under Show Answer

Q609) Which of the following Utility approaches suggest that Utility can be measured and quantified? Show Answer

Q610) Which of the following Utility measurement approaches is based on the Marshallian school of thought? Show Answer

Q611) Marshallian utility analysis is known as ______ analysis Show Answer

Q612) Who is the main exponent of Marginal Utility Analysis? Show Answer

Q613) Marginal Utility Approach to demand was given by Show Answer

Q614) According to Marginal Utility analysis, Utility can be measured in Show Answer

Q615) Marginal Utility Approach is also called Show Answer

Q616) Cardinal Utility Approach is also known as Show Answer

Q617) Cardinal Measure of Utility is required in Show Answer

Q618) If we make the assumption that Utility can be expressed in numbers, we are adopting Show Answer

Q619) Which of the approaches uses Money Measurement Concept for Utility? Show Answer

Q620) Which of the theories is applicable under Cardinal Approach to Utility? Show Answer

Q621) Which one of the following assumptions is not necessary for the Cardinal Utility Theory? Show Answer

Q622) Cardinal Approach to Utility analyses Show Answer

Q623) Under Cardinal Approach to Utility ,……… is the measuring rod of Utility. Show Answer

Q624) Which of the following is an assumption under Cardinal Approach to Utility Analysis? Show Answer

Q625) Which of the following is not an assumption under Cardinal Approach to Utility Analysis? Show Answer

Q626) The Cardinal Approach to Utility Analysis assumes that Utility is measurable and quantifiable. This means Show Answer

Q627) The Cardinal Approach to Utility assumes Marginal Utility of Money is Show Answer

Q628) ……… is the sum total of the Utility derived from additional units of a commodity Show Answer

Q629) ……….. of a commodity is the additional Utility derived by a consumer, by consuming one more unit of that Commodity. Show Answer

Q630) Marginal Utility can be stated by Show Answer

Q631) Marginal Utility = Additional Utility derived by consuming …….. additional unit of a commodity. Show Answer

Q632) Marginal Utility Show Answer

Q633) Total Utility - Show Answer

Q634) Total Utility is maximum when Show Answer

Q635) When total utility is increases at a diminishing rate, then marginal utility is ______ Show Answer

Q636) Marginal Utility will always show Show Answer

Q637) The Marginal Utility Curve is Show Answer

Q638) The Total Utility derived by Ram by consuming 10 cups of Coffee is 99, whereas the total Utility on consumption of 11th Cup is 95. What is the Marginal Utility for 11th cup of Coffee? Show Answer

Q639) The Total Utility that Shyam derives after having 4 Mangoes is 10, and the Total Utility on consuming 5 Mangoes is 9. What is the Marginal Utility for 5th mango? Show Answer

Q640) Total Utility derived by Ram by eating 10 Cakes is 250. Marginal Utility of the 11th Cake is -60. What will be the Total Utility for 11 Cakes? Show Answer

Q641) Total Utility derived by Ram by eating 6 Apples is 300. Marginal Utility of the 7th Apple is 30. What will be the Total Utility for 7 Apples? Show Answer

Q642) The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives ……… from additional consumption. Show Answer

Q643) Which of the following laws states that the more a consumer consumes a product, the lesser the Utility he derives from the additional consumption? Show Answer

Q644) The 2nd glass of Lemon Juice gives lesser satisfaction to a thirsty person. This is a case of Show Answer

Q645) The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives lower utility from ………. Show Answer

Q646) After reaching a saturation point, consumption of additional units of the commodity cause - Show Answer

Q647) Marginal Utility of a commodity depends on its quantity and is Show Answer

Q648) Which of the following is not an assumption of Law of Diminishing Marginal Utility? Show Answer

Q649) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility? Show Answer

Q650) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility? Show Answer

Q651) As per the Law of Diminishing Marginal Utility, Continuous Consumption means there should be ………. between the consumption of one unit and another unit. Show Answer

Q652) The Law of Diminishing Marginal Utility does not apply to ………., where personal preferences are dominant. Show Answer

Q653) The Law of Diminishing Marginal Utility will not hold good if the Income of the Consumer - Show Answer

Q654) The Law of Diminishing Marginal Utility is based on the assumption that the habits and tastes of the consumer - Show Answer

Q655) If customers' taste or liking for an item increases with additional consumption, then the Law of Diminishing Marginal Utility will still hold good. This statement is Show Answer

Q656) One of the assumptions is that the Law of Diminishing Marginal Utility is not applicable to Show Answer

Q657) As per the assumptions to the Law of Diminishing Marginal Utility, in case of money, gold, etc. a greater quantity may Show Answer

Q658) Utility may be affected by the presence or absence of Show Answer

Q659) Utility obtained from tea may be affected if no sugar is available. This statement is Show Answer

Q660) Law of Diminishing Marginal Utility applies only if ……….. to measurement of utility is assumed. Show Answer

Q661) Which of the following laws say "If a person has a product which can be put to several uses lie will distribute it among these uses in such a way that it has the same Marginal Utility'? Show Answer

Q662) The Consumer will attain maximum satisfaction, and will be in equilibrium when MU of money spent on various goods that he buys, are Show Answer

Q663) The Consumer will attain ………. satisfaction, and will be in equilibrium when MU of money spent on various goods that he buys, are equal. Show Answer

Q664) The Consumer will attain maximum satisfaction, and will be ……….. when MU of money spent on various goods that he buys, are equal. Show Answer

Q665) The Consumer will attain maximum satisfaction, and will be in equilibrium when ……… that he buys, are equal. Show Answer

Q666) If MU of money spent on Commodity A is greater than the MU of money spent on Commodity B, the Consumer will withdraw some money from the purchase of B, and will spend it on A, till the MU of money in the two cases becomes equal. Which theory says so? Show Answer

Q667) The Law of Equi-Marginal Utility applies because Show Answer

Q668) As per the Ordinal Approach Show Answer

Q669) If we make the assumption that Utility cannot be expressed in numbers, we are adopting Show Answer

Q670) In which approach is Utility ranked in order of preferences but not measured and quantified? Show Answer

Q671) Which of the following statements regarding Ordinal Utility is true? Show Answer

Q672) Ordinal Utility Approach is also called Show Answer

Q673) Which of the following Economists is not concerned with Ordinal Utility Approach? Show Answer

Q674) Ordinal Approach to Utility analyses Show Answer

Q675) Which of the approaches dispenses with the Money Measurement Concept for Utility? Show Answer

Q676) Which of the approaches helps to explain the Law of Demand? Show Answer

Q677) The economic analysis expects the Consumer to behave in a ……… manner. Show Answer

Q678) A Rational Person does not act unless - Show Answer

Q679) Rational decision-making requires that Show Answer

Q680) A Buyer's willingness to pay is that Buyer's Show Answer

Q681) The Consumer will be willing to purchase an item, so long as the Marginal Utility (additional satisfaction) derived is equal to the Price of the commodity. This principle is called Show Answer

Q682) If the Price paid is more than the additional satisfaction derived from that item, the Consumer will Show Answer

Q683) Consumer is in equilibrium and he keeps purchasing till the point Show Answer

Q684) Consumer Surplus means Show Answer

Q685) Consumer Surplus is the area Show Answer

Q686) In economics, what a Consumer is ready to pay minus what he actually pays, is termed as Show Answer

Q687) Consumer Surplus can be best represented as Show Answer

Q688) "The excess of Price which he would be willing to pay rather than go without the thing over that which he actually does pay in the economic measure of his surplus satisfaction" is given by Show Answer

Q689) ______ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays. Show Answer

Q690) The difference between the price a consumer is willing to pay and the price he actually pays is called Show Answer

Q691) The law of Consumer Surplus is based on Show Answer

Q692) From which of the following concept of consumer's surplus has been derived Show Answer

Q693) The concept of Consumer Surplus arises since for all earlier units purchased (i.e. prior to equilibrium point) Show Answer

Q694) The concept of Consumer Surplus arises due to the reason that Show Answer

Q695) The concept of Consumer Surplus arises due to the reason that Show Answer

Q696) If MU, is the Marginal Utility of product X and Px is the price of Product X, a Rational Consumer will consume the Product X until Show Answer

Q697) At the point of Consumers' Equilibrium Show Answer

Q698) In the concept of Consumer's Equilibrium and Consumer's Surplus, for the quantity purchased at the equilibrium level Show Answer

Q699) In the concept of Consumer's Equilibrium and Consumer's Surplus, for the quantity purchased at the equilibrium level, Marginal Utility is Show Answer

Q700) For the quantity purchased at the Consumer's Equilibrium level, is Show Answer

Q701) Consumers' Surplus arises in respect of - Show Answer

Q702) A Consumer consumed three units of a product. Marginal Utilities derived from the three units are ? 400, ? 350 and ? 300, respectively. If the price of the product is ? 300 per unit, the Consumer Surplus is Show Answer

Q703) A Consumer consumed three units of a product. Marginal Utilities derived from the first two units are ? 500 and ? 400. If the price of the product is ? 300 per unit and the Consumer is in equilibrium at 3 units, the Marginal Utility of the 3rd unit should be Show Answer

Q704) A Consumer consumed 3 units of a product. Marginal Utilities derived from the first two units are ? 500 and ? 400. If the price of the product is ? 300 per unit and the Consumer is in equilibrium at 3 units, the Consumer Surplus will be Show Answer

Q705) Consumer Surplus is highest in the case of Show Answer

Q706) Which of the following goods give the maximum amount of Consumer Surplus? Show Answer

Q707) Which of the following statements regarding Consumer Surplus is not true? Show Answer

Q708) ______ Consumer Surplus indicates higher level of efficiency in the economy. Show Answer

Q709) ……….. is helpful in designing Government policies and implementing welfare programs. Show Answer

Q710) While analyzing Marshall's measure of Consumer's Surplus, we assume Show Answer

Q711) Suppose that the price of a new bicycle is ? 3,000. Nathan values a new bicycle at ? 5,000. What is the value of Total Consumer Surplus if he buys a new bi-cycle? Show Answer

Q712) If a buyer's willingness to pay for a new car is ? 12,00,000, and she is able to actually buy it for ? 9,00,000, her Consumer Surplus is Show Answer

Q713) Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay ? 30 for one, Buyer 2 is willing to pay ? 25 for one, and Buyer 3 is willing to pay ? 20 for one. If the price is Rs 25, how many vases will be sold and what is the value of j Consumer Surplus in this market Show Answer

Q714) Consumer stops purchasing the additional units of the commodity when Show Answer

Q715) Consumer's Surplus left with the consumer under Price Discrimination is Show Answer

Q716) Under which of the following market types will Consumer's Surplus be generally minimum Show Answer

Q717) A Monopolist will try to Consumer's Surplus to his advantage by adopting Show Answer

Q718) In case of two or more products, a Consumer reaches equilibrium when Show Answer

Q719) If the value of MUx/Px is more than MUy /Py, then the Consumer Show Answer

Q720) If the prices of ice-cream and chocolate are ? 40 and ? 30 respectively, and the Marginal Utility of Chocolate is 150, what is the Marginal Utility of icecream assuming that consumer is at equilibrium? Show Answer

Q721) Which among the following is the drawback of Consumer Surplus (as explained in Marginal Utility analysis)? Show Answer

Q722) In case of necessaries, the Marginal Utilities of the first few units are Show Answer

Q723) The Consumer's Surplus derived from a product is …….. by the availability of substitutes. Show Answer

Q724) The concept of Consumer's Surplus fails in case of articles which are used for their prestige value, e.g. Diamonds, etc. This statement is Show Answer

Q725) The concept of Consumer's Surplus is based on the assumption that Marginal Utility of Money is Show Answer

Q726) The concept of Consumer's Surplus adopts Show Answer

Q727) If we make the assumption that Utility cannot be expressed in monetary terms, the concept of Consumer's Surplus Show Answer

Q728) Indifference Curve Approach to Utility Analysis was given by Show Answer

Q729) According to Indifference Curve analysis, Utility can be measured in Show Answer

Q730) Indifference Curve Approach is also called Show Answer

Q731) Ordinal Utility Approach is also known as Show Answer

Q732) Ordinal Utility Approach is also known as Show Answer

Q733) In Indifference Curve Analysis, the Customers' preferences are Show Answer

Q734) ……… shows various combinations of two products that give same amount of satisfaction. Show Answer

Q735) An Indifference Curve represents all those combinations of goods which gives Show Answer

Q736) All points on the same Indifference Curve represents Show Answer

Q737) The Consumer is said to be ……… among different points on an IC Show Answer

Q738) Indifference Curve slopes Show Answer

Q739) Indifference curve is convex slope, the reason is _________ Show Answer

Q740) Indifference Curve is downward sloping Show Answer

Q741) Indifference Curve has - Show Answer

Q742) The reasons for downward sloping curve Show Answer

Q743) ……..have a negative slope and cannot intersect each other. Show Answer

Q744) An Indifference Curve slopes down towards right, since more of one commodity and less of another result in- Show Answer

Q745) An Indifference Curve is - Show Answer

Q746) Which of the following statements regarding Indifference Curve is not true? Show Answer

Q747) Which of the following is a feature of the Indifference Curve? Show Answer

Q748) Which of the following is a property of an Indifference Curve? Show Answer

Q749) Which of the following is not a property of the Indifference Curve? Show Answer

Q750) Which of the following statements is incorrect? Show Answer

Q751) Which of the following is not an assumption of the Theory of Demand based on analysis of Indifference Curves? Show Answer

Q752) Indifference Curve approach assumes Show Answer

Q753) Indifference Curve approach deals with Show Answer

Q754) Indifference Curve Approach assumes Show Answer

Q755) ……………. depicts complete picture of consumer’s tastes and preferences. Show Answer

Q756) A set of ………. is called Indifference Map. Show Answer

Q757) Under Indifference Map, even though higher levels of satisfaction are identified, it cannot be quantified as such. This statement is Show Answer

Q758) The farther the Indifference Curve is from the origin, then Show Answer

Q759) A higher Indifference Curve shows Show Answer

Q760) A lower Indifference Curve shows Show Answer

Q761) Combinations lying on a higher Indifference Curve contain more of Show Answer

Q762) The general assumption in Consumer Behaviour under Indifference Curve Analysis is that more goods are preferred to less of them. This statement is Show Answer

Q763) An Indifference Map can also be drawn such that two Indifference Curves cut each other. This statement is Show Answer

Q764) No two ICs will cut or intersect each other. This statement is Show Answer

Q765) ……….. indicates how much of one commodity is substituted for how much of another commodity. Show Answer

Q766) In the context of Indifference Curve Analysis, MRS stands for Show Answer

Q767) MRS is indicated by Show Answer

Q768) MRS indicates movement Show Answer

Q769) Generally, MRS shows Show Answer

Q770) Decreasing Trend of MRS makes the Indifference Curve Show Answer

Q771) If marginal rate of substitution is increasing then shape of indifference curve is ______ Show Answer

Q772) Convexity of IC is due to Show Answer

Q773) Why does the Indifference Curve Analysis approach operate? Show Answer

Q774) In order to get maximum satisfaction, the consumer has to work under some constraints. These constraints are explained by Show Answer

Q775) A ………. shows all those combinations of two goods which the consumer can buy spending his given money income on the two goods at their given prices. Show Answer

Q776) Budget Line is also called Show Answer

Q777) Price Line is also called Show Answer

Q778) The price line/Budget lint of a consumer is Show Answer

Q779) If a combination is below the Price Line, it indicates that there is Show Answer

Q780) A Point below the Price Line represents Show Answer

Q781) Every Point below the Price Line represents Show Answer

Q782) A Point above the Price Line will be …….. the reach of the Consumer, at his present levels of income and spending. Show Answer

Q783) Budget Line shows all the combinations of …….. products. Show Answer

Q784) As Consumers' Income and Spending increases, the Price Line or Budget Line Show Answer

Q785) If Consumers' Income and Spending decreases, the Price Line or Budget Line Show Answer

Q786) As per Indifference Curve Analysis, to maximise his satisfaction, a Consumer will try to Show Answer

Q787) To Consumer's objective of maximising his satisfaction and reaching the highest possible Indifference Curve is restricted by Show Answer

Q788) The Consumer is in Equilibrium at a point where the Budget Line Show Answer

Q789) A Consumer is at equilibrium when Show Answer

Q790) At the equilibrium point on Indifference Curve which of the following equation is satisfied? Show Answer

Q791) At the equilibrium point on Indifference Curve which of the following equation is satisfied? Show Answer

Q792) At the equilibrium point on Indifference Curve which of the following is satisfied? . Show Answer

Q793) What will be the Marginal Utility of Product A, if the prices of A and B are ? 10 and ? 20 respectively, and the Marginal Utility of Product B is 50, assuming that the Consumer is at equilibrium? Show Answer

Q794) The Marginal Utilities of Product A and Product B are 300 and 450 at equilibrium respectively. If the price of the product B is ? ? 60, what is the price of Product A at equilibrium level? Show Answer

Q795) Under Income Effect, the Consumer Show Answer

Q796) Which of the following is not an assumption in Consumer Equilibrium analysis under Indifference Curve Approach? Show Answer

Q797) In Consumer Equilibrium analysis under Indifference Curve Approach, the Consumer is assumed to spend his income ……… on two goods. Show Answer

Q798) ………. is the want satisfying power of the product. Show Answer

Q799) ………. refers to the quantity of goods or services, those Consumers are willing and able to purchase / buy in a given market, at various prices, in a given period of time. Show Answer

Q800) Demand refers to the quantity of goods or services, that ……… are willing and able to purchase / buy in a given market, at various prices, in a given period of time. Show Answer

Q801) Demand for a commodity refers to Show Answer

Q802) On which of the following the Effective Demand for a thing depends? Show Answer

Q803) For want to become an Effective Demand, it must be backed by the Show Answer

Q804) Which of the following is an important aspect in Demand? Show Answer

Q805) In the context of Demand, the availability of money with the Consumer, in order to purchase the Commodity is called Show Answer

Q806) Purchasing Power refers to Show Answer

Q807) Purchasing Power refers to Show Answer

Q808) Purchasing power of money fall when Show Answer

Q809) Unless Demand is backed by purchasing power or ability to pay, it does not constitute Demand. This statement is Show Answer

Q810) In the context of Effective Demand, Willingness to spend means Show Answer

Q811) For Demand to be effective, the Commodity should be available Show Answer

Q812) Demand arises in respect of Show Answer

Q813) Demand arises in respect of Show Answer

Q814) Demand arises in respect of Show Answer

Q815) Demand arises in respect of Show Answer

Q816) Demand for Final Consumption arises in Show Answer

Q817) Demand for Intermediate Consumption arises in Show Answer

Q818) Demand for Resources and Factors of Production is Show Answer

Q819) The demand for factors of production is demand Show Answer

Q820) Individual Demand is also called - Show Answer

Q821) Household Demand is also called Show Answer

Q822) Individual Demand shows the quantities of demand for a commodity at various prices by Show Answer

Q823) Industry Demand is also called Show Answer

Q824) Market Demand is also called Show Answer

Q825) Market Demand shows the quantities of demand for a commodity at various prices by Show Answer

Q826) Market Demand is the sum total of Show Answer

Q827) ……… is the sum total demand of all individuals in the market. Show Answer

Q828) If A = Household Demand and B = Market Demand, then Show Answer

Q829) If Household Demand and Market Demand are equal in a situation, it means that Show Answer

Q830) The total demand for the product of an individual Firm at various prices is known as Show Answer

Q831) If Market Demand and Firm's Demand are equal in a situation, it means that Show Answer

Q832) If Individual Demand = Market Demand = Firm’s Demand, it means that - Show Answer

Q833) A relative price is ______ Show Answer

Q834) Which of the following influence most the price level in the very short-run period? Show Answer

Q835) Which of the following is not a determinant of Demand? Show Answer

Q836) All of the following are determinants of demand except Show Answer

Q837) When a Consumer prefers a commodity due to prestige attached to it, it is known as Show Answer

Q838) When a Consumer wants a product by seeing another person use that product, it is called Show Answer

Q839) Demonstration Effect is generally found in respect of Show Answer

Q840) Goods covered by Demonstration Effect can be best described as Show Answer

Q841) In which of the following will the Demonstration Effect be high? Show Answer

Q842) ………. are goods which are consumed together or simultaneously Show Answer

Q843) Complementary Goods are goods which are consumed Show Answer

Q844) The demand for two-wheelers is likely to decrease with an increase in petrol prices because two- wheelers and petrol are Show Answer

Q845) Which of these is not a Complementary Good for Pen? Show Answer

Q846) If an increase in the price of Blue Jeans leads to an increase in the demand for Tennis Shoes, then Blue Jeans and Tennis Shoes are Show Answer

Q847) If two goods are Complements, it means that a rise in the price of one commodity will lead to Show Answer

Q848) In case of Complementary Goods, increase in price of a product will Show Answer

Q849) In case of Complementary Goods, decrease in price of a product will Show Answer

Q850) If X and Y are Complementary Goods, the price of X and the Demand of Y are Show Answer

Q851) If X and Y are Complementary Goods, if there is an increase in Price of X, then Show Answer

Q852) If X and Y are Complementary Goods, if there is an decrease in Price of X, then Show Answer

Q853) ……… are goods which are consumed in place of one another Show Answer

Q854) Substitute Goods are goods which can be used Show Answer

Q855) Which of the following pairs of goods is an example of Substitutes? Show Answer

Q856) Which of the following is an example of Substitutes? Show Answer

Q857) Which of the following pairs of goods in an example of substitutes? Show Answer

Q858) In case of Substitute Goods, increase in price of a product will Show Answer

Q859) In case of Complementary Goods, decrease in price of a product will Show Answer

Q860) If X and Y are Substitute Goods, the price of X and the Demand of Y are - Show Answer

Q861) When the Price of a Substitute of X Commodity falls, the Demand for X Show Answer

Q862) If the Price of Product A increases relative to the Price of Substitute B & C, the demand for Show Answer

Q863) If the Price of Pepsi decreases relative to the Price of Coke and 7-Up, the demand for Show Answer

Q864) If Tea and Coffee are Substitutes, a fall in the Prices of Tea leads to -
(i) Rise in the demand for Tea
(ii) Fall in the supply of Coffee
(iii) Fall in the demand for Coffee
(iv) Rise in the supply of Tea
Show Answer

Q865) If X and Y are Substitute Goods, if there is an increase in Price of X, then Show Answer

Q866) If X and Y are Substitute Goods, if there is an decrease in Price of X, then - Show Answer

Q867) In which phase of the business cycle to Producers try to sell out their inventories? Show Answer

Q868) Which of the following Statements is not true about Individual Demand? Show Answer

Q869) What effect does an increase in the price of a product have on the Purchasing Power of the Consumer? Show Answer

Q870) The Demand for a commodity also depends upon the money income of the household. This statement is Show Answer

Q871) The Demand for a commodity depends only upon the money income of the household. This statement is Show Answer

Q872) If demand decreases with an increase in money income of Consumers, such goods are called - Show Answer

Q873) Giffen Goods are Show Answer

Q874) Inferior Goods are also called Show Answer

Q875) The Giffen Effect in respect of Inferior Goods was observed in the case of Show Answer

Q876) As income levels increase, the demand for goods satisfying Necessities of life, will be …….. to the increase in income. Show Answer

Q877) If Income Levels increase, and the demand for goods increase by less than proportionate extent, such goods will be Show Answer

Q878) If Income Levels increase, and the demand for goods increase by more than proportionate extent, such goods will be Show Answer

Q879) As Income Levels increase beyond a certain extent, the propensity to consume Show Answer

Q880) Generally, larger size of population of a country or a region implies ……… for all commodities as such. Show Answer

Q881) In case of unequal distribution of income in the country, the propensity to consume will be ….., and demand for Consumer Goods will be ……. Show Answer

Q882) If the Consumers expect an increase in prices of the product in the future, its current demand will be Show Answer

Q883) If the Consumers expect a decrease in prices of the product in the future, its current demand will be Show Answer

Q884) Demand is affected by weather conditions and seasonal aspects also. This statement is Show Answer

Q885) Demand for Air Conditioners, Water Coolers, Refrigerators show an increase during Show Answer

Q886) Demand Schedule shows the relation between Show Answer

Q887) In a typical Demand Schedule, quantity demanded Show Answer

Q888) ……… indicates the changes in Consumers' purchasing habits, depending on the price variation of a particular product. Show Answer

Q889) A Demand Curve shows Show Answer

Q890) A Demand Curve deals with Show Answer

Q891) While drawing the Demand Curve, the change takes place in which of the following factors? Show Answer

Q892) Generally, the Demand Curve slopes Show Answer

Q893) Demand Curve in most cases slopes Show Answer

Q894) Demand Curve in most cases has a Show Answer

Q895) Demand Curve Show Answer

Q896) All but one of the following are assumed to remain the same while drawing an individual's Demand Curve for a product. Which one is it? Show Answer

Q897) If regardless of changes in its price, the quantity demanded of a product is unchanged, then, Demand Curve for that product will be Show Answer

Q898) If any quantity at the same price, then, the Demand Curve for that product will be Show Answer

Q899) What is the other name given to the Demand Curve? Show Answer

Q900) What is the other name given to the Average Revenue Curve? Show Answer

Q901) Why is the Demand Curve otherwise known as the Average Revenue Curve? Show Answer

Q902) The Total Area under the Demand Curve of a product measures Show Answer

Q903) If Marginal Utility of a product remains constant, the Demand Curve will be Show Answer

Q904) In a Demand Curve, the Horizontal Axis will be Show Answer

Q905) In a Demand Curve, the Vertical Axis will be Show Answer

Q906) Which of these is not depicted in a typical Demand Curve? Show Answer

Q907) The Law of Demand is explained by Show Answer

Q908) Which of the following can be regarded as law of Demand? Show Answer

Q909) The Law of Demand, assuming other things to remain constant, establishes the relationship between Show Answer

Q910) The Law of Demand refers to Show Answer

Q911) The Law of Demand is a Show Answer

Q912) The Law of Demand is a principle relating to Show Answer

Q913) The term "Ceteris Paribus" in the Law of Demand denotes Show Answer

Q914) Which of these is a variable factor in the Law of Demand? Show Answer

Q915) The condition "other things being equal" in the Law of Demand denotes Show Answer

Q916) What type of relationship exists between Price and Quantity Demanded? Show Answer

Q917) As per the Law of Demand, if the Price of a commodity, its Demand Show Answer

Q918) Why does the Law of Demand operate? Show Answer

Q919) The total effect of a price change of a commodity is Show Answer

Q920) When we say that the Demand for a commodity depends upon the money income of the Consumer, we are referring to Show Answer

Q921) …….. refers to the effect of a change in the price of a product on the Consumer's purchasing power. Show Answer

Q922) As a result of a fall in prices of the commodity, the Consumer's increases. Show Answer

Q923) If there is a decrease in the prices of a product, the Consumer's Real Income Show Answer

Q924) When increase in his Real Income induces a Consumer to buy more of a Commodity whose prices has fallen, it is called Show Answer

Q925) Which of the following statements best describes the Income Effect? Show Answer

Q926) When the price of a Commodity falls, the Consumer Show Answer

Q927) When the price of a Reynolds pen falls, ceteris paribus, Buyers substitute Reynolds Pen for other pens that are now relatively more expensive. This is called Show Answer

Q928) The 'Substitution Effect' takes place due to change in Show Answer

Q929) ……… refers to the Consumer's Reaction to a change in the relative prices of two products, keeping the Total Utility constant. Show Answer

Q930) When the price of a product increases, Consumers tend to switch to purchasing the substitutes of the product. This describes why the Demand Curve for the good Show Answer

Q931) Which of the following statement best describes the Substitution Effect? Show Answer

Q932) In normal circumstances, if the Government increases the tax on any product, the demand for the product ……… in the short run Show Answer

Q933) The segregation between Income Effect and Substitution Effect is adequately explained by Show Answer

Q934) When the price of a product falls, its Demand increases because Show Answer

Q935) The Law of Demand is explained by Show Answer

Q936) Under the Law of Diminishing Marginal Utility, Consumers continue buying till Price equals Marginal Utility. Hence at lower prices Show Answer

Q937) Since Consumers continue buying till Price equals Marginal Utility, if the price of a product is lower, the Consumer will attain equilibrium Show Answer

Q938) Under the Indifference Curve approach, if the price of a product is lower, the Consumer will attain equilibrium Show Answer

Q939) Conspicuous Goods are also called Show Answer

Q940) Conspicuous goods are also called as: Show Answer

Q941) Conspicuous Goods Show Answer

Q942) In case of Conspicuous Goods, as the Price increases, the quantity demanded thereof Show Answer

Q943) When Consumers feel that if the commodity expensive, that it has got more utility, we are referring to Show Answer

Q944) Which of the following is an example of Conspicuous Goods? Show Answer

Q945) Which of the following is not an exception to the Law of Demand? Show Answer

Q946) If the demand for Petrol remains the same even after the increase in petrol prices, it means Petrol is a Show Answer

Q947) In the case of a Giffen Good, the Demand Curve be Show Answer

Q948) Giffen Goods are those goods Show Answer

Q949) In case of Giffen Goods, Demand Curve will slope Show Answer

Q950) An Inferior Commodity is one which is consumed in smaller quantities when the income of consumer Show Answer

Q951) Giffen Goods are goods which Show Answer

Q952) Giffen Goods are Show Answer

Q953) When people buy more of a product when its price goes up, the product will be Show Answer

Q954) When due to their constant usage, certain goods have become necessities of life, they are referred to as Show Answer

Q955) Under which of the following situations the Law of Demand will not operate? Show Answer

Q956) Under which of the following situations the Law of Demand will not operate? Show Answer

Q957) Under which of the following situations the Law of Demand will not operate? Show Answer

Q958) Expansion and Contraction of demand for a good occurs as a result of- Show Answer

Q959) In case of Expansion and Contraction of Demand, the Demand Curve Show Answer

Q960) Fall in quantity demanded of a product as a result of rise in price is known as Show Answer

Q961) Rise in quantity demanded of a product as a result of reduction in price is known as Show Answer

Q962) Contraction of Demand is the result of- Show Answer

Q963) Expansion of Demand is the result of Show Answer

Q964) A movement along the Demand Curve for soft drinks is best described as Show Answer

Q965) In case of Expansion of Demand, there is a Show Answer

Q966) In case of Contraction of Demand, there is a Show Answer

Q967) In case of Expansion of Demand, the quantity demanded - Show Answer

Q968) In case of Contraction of Demand, the quantity demanded Show Answer

Q969) Expansion of Demand is associated with Show Answer

Q970) Contraction of Demand is associated with Show Answer

Q971) Expansion and Contraction of demand for a product occurs as a result of changes in Show Answer

Q972) Change in demand due to change in price is known as ________ Show Answer

Q973) Change in Demand as a result of the factors other than Price is known as Show Answer

Q974) Increase in Demand leads to Show Answer

Q975) Decrease in Demand leads to Show Answer

Q976) Which of the following results in a shifting of the Demand Curve? Show Answer

Q977) In which of the following cases, does a shift in demand take place? Show Answer

Q978) Change in demand, as a result of the factors other than price is known as Show Answer

Q979) Shift in demand does not take place due to Show Answer

Q980) An Increase in Demand can result from Show Answer

Q981) A Decrease in Demand can result from Show Answer

Q982) A drought in India leads to unusually low level of wheat production. This would lead to a rise in the price of wheat and fall in the quantity of wheat demanded due to Show Answer

Q983) Suppose consumer tastes shift toward the consumption of apples.Which of the following statements is an accurate description of the impact of this event on the market for apples? Show Answer

Q984) In case of Shift in Demand, ……… remains constant. Show Answer

Q985) Rise in the price of Substitute Goods leads to Show Answer

Q986) Fall in the price of Substitute Goods leads to Show Answer

Q987) Other things being equal, a fall in the price of complementary good will cause the ______ of the other to rise. Show Answer

Q988) A Decrease / Fall in the price of Complementary Goods leads to - Show Answer

Q989) An Increase in the price of Complementary Goods leads to Show Answer

Q990) Increase in Income Levels of Buyers leads to Show Answer

Q991) Decrease in Income Levels of Buyers leads to Show Answer

Q992) Which of the factors does not cause Increase in Demand? Show Answer

Q993) Increase in Demand is caused by Show Answer

Q994) Which of the factors does not cause Decrease in Demand? Show Answer

Q995) Decrease in Demand is caused by- Show Answer

Q996) The concept of Elasticity of Demand was developed by Show Answer

Q997) Two important factors which make difference in the Elasticity of Demand for different commodities are Show Answer

Q998) Elasticity of Demand refers to Show Answer

Q999) Elasticity of Demand is attributed to Show Answer

Q1000) Elasticity of Demand is measured in case of Show Answer

Q1001) Which of the following statements regarding Elasticity of Demand is true? Show Answer

Q1002) Which of the following statements is true with regard to the elasticity of demand? Show Answer

Q1003) Price Elasticity of Demand is defined as Show Answer

Q1004) Price Elasticity of Demand is defined as the responsiveness of - Show Answer

Q1005) Price Elasticity of Demand for a product is Show Answer

Q1006) Price Elasticity of Demand is given by Show Answer

Q1007) Usually, the demand for Necessities is Show Answer

Q1008) Demand for which of the following products is/are relatively inelastic? Show Answer

Q1009) Which of the following products has highly inelastic demand? Show Answer

Q1010) Amongst the following which item has highest Price Elasticity? Show Answer

Q1011) In the context of Elasticity of Demand, the paradox of plenty relates more to items in the Show Answer

Q1012) Goods which have more close or perfect substitutes are Show Answer

Q1013) Goods which have fewer substitutes are Show Answer

Q1014) Goods having higher proportion of the Consumers' spending are Show Answer

Q1015) Goods having lower share in the Consumers' Budget are Show Answer

Q1016) Luxury Goods are considered ………. than Necessity Goods. Show Answer

Q1017) Necessary Goods are considered ………. than Luxury Goods. Show Answer

Q1018) Salt is ………. to price changes than Motor Car. Show Answer

Q1019) Cellphone is ………. to price changes than Bread. Show Answer

Q1020) Goods which can be put to multiple uses are - Show Answer

Q1021) Goods which have a specified and particular use are Show Answer

Q1022) Demand for electricity is elastic because - Show Answer

Q1023) Goods in respect of which the Consumers have more time to adjust or modify their consumption pattern are Show Answer

Q1024) Goods in respect of which the Consumers do not have time to adjust their consumption pattern are - Show Answer

Q1025) Goods in respect of which the use or consumption can be postponed are - Show Answer

Q1026) Goods which are required for immediate or urgent consumption are - Show Answer

Q1027) Medicines have less elastic demand since - Show Answer

Q1028) Goods which are subject to Consumer Habits, e.g. Cigarette, Liquor, etc. are - Show Answer

Q1029) What would be the value of elasticity of demand, if the demand for the good is perfectly inelastic? Show Answer

Q1030) If the demand for the good is perfectly inelastic, the Demand Curve will be Show Answer

Q1031) A demand curve parallel to y-axis implies Show Answer

Q1032) Vertical Demand Curve will show that the price elasticity of demand is Show Answer

Q1033) If the demand for a commodity is ………, entire burden of indirect tax will fall on the consumer. Show Answer

Q1034) For goods with perfectly inelastic demand - Show Answer

Q1035) If the demand for the good is perfectly inelastic, which of the following is correct? Show Answer

Q1036) If the demand for the good is perfectly inelastic, and E is the measure of Elasticity, which of the following is true? Show Answer

Q1037) If a product has perfectly inelastic demand, and there is a change in its price, which of the following is correct? Show Answer

Q1038) Identify the factor which generally keeps the Price- Elasticity of Demand for a product low. Show Answer

Q1039) Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity demanded of a product is smaller than the percentage fall in its price. Show Answer

Q1040) Price Elasticity of Demand for addictive products like cigarettes and alcohol would be Show Answer

Q1041) If Electricity Demand is inelastic, and electric rates increase, which of the following is likely to occur? Show Answer

Q1042) For goods with less elastic demand - Show Answer

Q1043) If the demand for the good is less elastic, and E is the measure of Elasticity, which of the following is true? Show Answer

Q1044) If the demand for the good is less elastic, the Demand Curve will be Show Answer

Q1045) If a product has less elastic demand, and there is a change in its price, which of the following is correct? Show Answer

Q1046) When the price of a commodity increases from Rs. 8 to Rs. 9 then the demand decreases by 10%. The price Elasticity of demand is _______ Show Answer

Q1047) If the demand for a good is unit elastic, the value of the elasticity of demand would be Show Answer

Q1048) If the price of 'X' rises by 10% and the quantity demanded falls by 10%, 'X' has Show Answer

Q1049) For goods with unitelastic demand - Show Answer

Q1050) If the demand for the good is unit elastic, and E is the measure of Elasticity, which of the following is true? Show Answer

Q1051) If the demand for the good is unit elastic, the Demand Curve will be Show Answer

Q1052) If the demand for the good is unit elastic, the Demand Curve will be Show Answer

Q1053) Rectangular Hyperbola is also called - Show Answer

Q1054) If the demand for the good is unit elastic, the Demand Curve will be Show Answer

Q1055) If a product has unit elastic demand, and there is a change in its price, which of the following is correct? Show Answer

Q1056) In case of Straight Line demand curve meeting two axes, the Price Elasticity of demand at a point where the curve meets x-axis would be Show Answer

Q1057) Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity demanded of a product is more than the percentage fall in its price. Show Answer

Q1058) When quantity demanded changes by larger percentage than Price, Elasticity is termed as Show Answer

Q1059) Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively Show Answer

Q1060) For goods with more elastic demand Show Answer

Q1061) If the demand for the good is more elastic, and E is the measure of Elasticity, which of the following is true? Show Answer

Q1062) If the demand for the good is more elastic, the Demand Curve will be Show Answer

Q1063) What would be the value of Elasticity of Demand, if the demand for the good is perfectly elastic? Show Answer

Q1064) If the demand for the good is perfectly elastic, the Demand Curve will be Show Answer

Q1065) Horizontal Demand Curve will show that the price elasticity of demand is Show Answer

Q1066) For goods with perfectly elastic demand - Show Answer

Q1067) If the demand for the good is perfectly elastic, and E is the measure of Elasticity, which of the following is true? Show Answer

Q1068) What is the mean by price elasticity of demand greater than 1- Show Answer

Q1069) Horizontal Demand curve, Parallel to X-axis indicates, that the elasticity of Demand is ________ Show Answer

Q1070) Price Elasticity of Demand would be higher for those products which have Show Answer

Q1071) Demand for a good will tend to be more elastic if it exhibits which of the following features? Show Answer

Q1072) If the Elasticity of Demand for a commodity is perfectly inelastic, then which of the following is incorrect? Show Answer

Q1073) Demand for a product will tend to be more inelastic if it exhibits which of the following characteristics? Show Answer

Q1074) The Elasticity of Substitution between two Perfect Substitutes is Show Answer

Q1075) Which is correct about price elasticity of demand? Show Answer

Q1076) If the demand for a product reduces by 5% as a result of an increase in the price by 25%. What is the Price Elasticity of Demand? Show Answer

Q1077) If Price of Coffee decreases from ? 5 to ? 4.50, and as a result the Consumer's Demand for Coffee increase from 60 grams to 75 grams, the absolute Price Elasticity of Demand of Coffee is Show Answer

Q1078) If the demand for a product reduces by 2% as a result of an increase in the price by 10%, what is the Price Elasticity of Demand for the product? Show Answer

Q1079) If the Demand for Cricket Balls increases from 50 to 55 because of fall in price from ? 25 to ? 24, what is the Price Elasticity of Demand for Cricket Balls? Show Answer

Q1080) What is the Price Elasticity of Demand for a product, if an increase in the price of the good by 2% leads to fall in demand by 3%? Show Answer

Q1081) Price of Mangoes increases by 22% and the quantity of mangoes demanded falls by 25%. This indicates that demand for mangoes is Show Answer

Q1082) Suppose the price of movies seen at a Theatre rises from ? 120 to ? 200 per person. The Theatre Manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons. What is the Price Elasticity of Demand for Movies? Show Answer

Q1083) Suppose a Department Store has a sale on its silverware. If the Price of a plate-setting is reduced from ? 300 to ? 200 and the quantity demanded increases from 3,000 plate settings to 5,000 plate- settings, what is the Price Elasticity of Demand for that item? Show Answer

Q1084) A Store has a special offer on CDs. It reduces the price from ? 150 to ? 100. The Store Manager observes that the quantity demanded increases from 700 CDs to 1,400 CDs. What is the Price Elasticity of Demand for CDs? Show Answer

Q1085) If a shop raises the price of a product from ? 60 to ? 100 and quantity demanded falls from 400 units to 300 units, the Price Elasticity of Demand is Show Answer

Q1086) A book seller estimates that if the price of a book is increased from ? 60 to ? 67, the quantity of books demanded will decrease from 2,035 to 1,946. The Book's Price Elasticity of Demand is approximately Show Answer

Q1087) What is the new quantity demanded when Price Elasticity is 1 and price changes from ? 15 to ? 10 and the original quantity demanded was 10 units? Show Answer

Q1088) What will be the price elasticity if original price is ? 5, original quantity is 8 units and changed price is ? 6 changed quantity is 4 units? Show Answer

Q1089) The original price of commodity is ? 500 and quantity demanded is 20 kgs. If price rises to ? 750 and quantity demanded reduce to 15 kgs, price elasticity of demand is _______ Show Answer

Q1090) The price of a tiffin box is ?100 per unit and the quantity demanded in a market is 25,000 units. Company increased the price to ? 125 per unit due to this increase in price quantity demanded decreases to 1,00,000 units. What will be price elasticity of demand Show Answer

Q1091) The price of a commodity decreases form 10 to 8 and the quantity demanded of it increases from 25 to 30 units. Then the coefficient of price elasticity will be _______ Show Answer

Q1092) The Elasticity at a given point on a Demand Curve is known as Show Answer

Q1093) Point Elasticity of Demand is calculated as Show Answer

Q1094) Which of the following statements regarding Elasticity of Demand is true? Show Answer

Q1095) If a point on a Demand Curve of any Product lies on X Axis, then Price Elasticity of Demand of that commodity at that point will be Show Answer

Q1096) If a point on a Demand Curve of any Product lies on Y Axis, then Price Elasticity of Demand of that commodity at that point will be Show Answer

Q1097) 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 Show Answer

Q1098) If R point bisects the Demand Curve in two equal parts, then elasticity at R equals Show Answer

Q1099) Point Elasticity at the mid-point on the Straight Line Demand Curve is Show Answer

Q1100) What is the elasticity between midpoint & upper extreme point of a straight line continuous demand curve? Show Answer

Q1101) At a price of ? 300 per month, there are 30,000 subscribers to Cable TV in a Small Town. If the Cable Company raises its price to ? 400 per month, the number of subscribers will fall to 20,000. Using the mid-point method for calculating the elasticity, what is the Price Elasticity of Demand for Cable TV? Show Answer

Q1102) What is the Price Elasticity of Demand when, price changes from ? 10 to ? 12 and as a result, demand falls from 6 units to 4 units? Show Answer

Q1103) If the quantity of blankets demanded increases from 4,600 to 5,700 in response to a decrease in their price from ? 220 to ? 190, the Price Elasticity of Demand for Blankets using Arc Method is Show Answer

Q1104) What is the Original Price of a Product when Price Elasticity is 0.71 and Demand changes from 20 units to 15 units and the new price is Rs 10? (Use Arc Method for computation) Show Answer

Q1105) Under Total Outlay Method, if as a result of the decrease in price of a product, the total expenditure on the product rises, we say that Price Elasticity of Demand is Show Answer

Q1106) Under Total Outlay Method, if Price and Consumer's Total Expenditure on the product move in opposite directions, then, Price Elasticity of Demand is Show Answer

Q1107) If the demand for a product is elastic, an increase in its price will cause the Total Expenditure of the Consumers to Show Answer

Q1108) If the demand for a product is elastic, an decrease in its price will cause the Total Expenditure of the Consumers to Show Answer

Q1109) Under Total Outlay Method, if as a result of the decrease in price of a product, the total expenditure on the product decreases, we say that Price Elasticity of Demand is Show Answer

Q1110) Under Total Outlay Method, if Price and Consumer's Total Expenditure on the product move in the same direction, then, Price Elasticity of Demand is Show Answer

Q1111) If the demand for a product is inelastic, an increase in its price will cause the Total Expenditure of the Consumers to Show Answer

Q1112) If the demand for a product is inelastic, an decrease in its price will cause the Total Expenditure of the Consumers to Show Answer

Q1113) Total Expenditure of a Consumer increases if-
(i). Demand is elastic and price rises
(ii). Demand is elastic and price falls
(iii). Demand is inelastic and price rises
(iv). Demand is inelastic and price falls
Show Answer

Q1114) Given the following four possibilities, which one results in an increase in Total Consumer Expenditure? Show Answer

Q1115) Due to change in price of the commodity, the Total Expenditure remains the same as before, then Elasticity under Total Outlay Method is Show Answer

Q1116) When Increase in prices is exactly balanced by a proportionate reduction in the purchase quantity, then Elasticity under Total Outlay Method is Show Answer

Q1117) An increase in price will result in an increase in Total Revenue if Show Answer

Q1118) Which of the following statements regarding Elasticity of Demand is true? Show Answer

Q1119) A decrease in price will result in an increase in Total Revenue if Show Answer

Q1120) If a good has price elasticity greater than one then Show Answer

Q1121) Ceteris paribus, what would be the impact on foreign exchange earnings for a given falling export prices, if the demand for the country's exports is inelastic? Show Answer

Q1122) If the Railways are making losses on passenger traffic, they should lower their fares. The suggested remedy would only work if the demand for Rail Travel had a price elasticity of Show Answer

Q1123) If Cinema Halls are making losses they should lower the ticket fares. This suggestion would only work if the demand for watching movies in cinema halls had a Price Elasticity of Show Answer

Q1124) Price Elasticity of demand for a product is zero. If the Firm increases the price of the product by 10%, Total Revenue of the Firm will Show Answer

Q1125) Income Elasticity of Demand is defined as the responsiveness of Show Answer

Q1126) Income Elasticity of Demand is given by Show Answer

Q1127) Positive Income Elasticity implies that as income rises, demand for the commodity Show Answer

Q1128) If Income-Elasticity is greater than zero, then the product is Show Answer

Q1129) ……….. have a positive Income Elasticity of Demand. Show Answer

Q1130) For what type of goods does demand fall with rise in income levels of households? Show Answer

Q1131) Negative Income Elasticity implies that as income rises, demand for the commodity Show Answer

Q1132) Generally when income of a consumer increases he goes for superior goods, leading to fall in demand for inferior goods. It means income elasticity of demand is ______. Show Answer

Q1133) What type of goods does a consumer eventually stop buying, when his income rises? Show Answer

Q1134) Goods having negative Income Elasticity are known as Show Answer

Q1135) In case of Inferior Goods, Income Elasticity is Show Answer

Q1136) In Demand-Supply Analysis, if the income of the Consumer increases, the Demand Curve for an inferior good Show Answer

Q1137) …….. have a negative Income Elasticity of Demand. Show Answer

Q1138) If quantity demanded does not change as Income changes, then Income Elasticity of Demand is Show Answer

Q1139) Goods having Zero Income Elasticity are Show Answer

Q1140) If an increase in Consumer Incomes leads to a increase in the demand for Product X, then Product X is Show Answer

Q1141) For ………. goods increase in income leads to increase in demand. Show Answer

Q1142) For a product to be called income elastic, its Income Elasticity has to be - Show Answer

Q1143) Services like Air Travel and Movies have an income elasticity of Show Answer

Q1144) What would be the value of Income Elasticity of demand for the meals in a costly restaurant? Show Answer

Q1145) If a good is a Luxury, its Income Elasticity of demand is Show Answer

Q1146) Goods having Income Elasticity > 1 are considered as Show Answer

Q1147) The Income of a Household rises by 20%, the demand for Computer rises by 25%, this means Computer (in Economics) is a/an Show Answer

Q1148) If Income Elasticity for the household for Product A is 2 then A is Show Answer

Q1149) If the Income Elasticity is greater than one, the commodity is Show Answer

Q1150) If Income Elasticity = 1, it means that proportion of Income spent on goods ………, as income of the Consumers increases. Show Answer

Q1151) If Consumers always spend 15% of their income on food, then the Income Elasticity of Demand for Food is Show Answer

Q1152) Which of the following is not an income-elastic product/service? Show Answer

Q1153) A Necessity is defined as a good having Show Answer

Q1154) Goods having Income Elasticity < 1 are considered as Show Answer

Q1155) Which of the following is not a determinant of the Advertising Elasticity of Demand? Show Answer

Q1156) If income increases by 10% and demand increases by 5%, then income elasticity of demand is: Show Answer

Q1157) Suppose a Consumer's income increases from ? 30,000 to ? 36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs to 30 CDs. What is the Income Elasticity of Demand for CDs here? Show Answer

Q1158) If the quantity of CD demanded increases from 260 to 290 in response to an increase in income from ? 9,000 to ? 9,800, the Income Elasticity of Demand is approximately Show Answer

Q1159) Concerned about the poor state of the economy, a Car Dealer estimates that if income decreases by 4%, Car Sales will fall from 352 to 335. Consequently, the Income Elasticity of Demand for cars is approximately Show Answer

Q1160) If an Increase In Consumer Incomes leads to a decrease in the demand for Product X, then Product X is Show Answer

Q1161) Income of a household increases by 10%, and the demand for Wheat rises by 5%. This means that Wheat is an example of Show Answer

Q1162) Income of a household increases by 10%, and the demand for TV rises by 20%. This means that TV is an example of Show Answer

Q1163) Income of a household increases by 5%, and the demand for Bajra falls by 2%. In this case, Bajra is an example of Show Answer

Q1164) In order to assess the effect of a change in price of one product on the demand for other products, which type of elasticity is often used? Show Answer

Q1165) Cross Elasticity measures the responsiveness of quantity demanded of a commodity to Show Answer

Q1166) In measuring Cross Elasticity, ……..is / are considered. Show Answer

Q1167) Which of the following statements regarding Cross Elasticity is true Show Answer

Q1168) If Goods X and Y are complementary, their Cross Elasticity is Show Answer

Q1169) Complementary Goods like tea and sugar have a ……… Cross Elasticity. Show Answer

Q1170) What will be the Slope of Demand Curve when it shows the Cross Elasticity between two Complementary Goods? Show Answer

Q1171) Cross Elasticity between Tea and Sugar is Show Answer

Q1172) Goods having negative Cross Elasticity are Show Answer

Q1173) Negative Cross Elasticity always implies that the goods are complementary in nature. This statement is Show Answer

Q1174) Goods having zero Cross Elasticity are Show Answer

Q1175) Cross Elasticity of Demand between Tea and Coffee is Show Answer

Q1176) If the co-efficient of Cross Elasticity of Demand of X for Y is 3, it means that X and Y are Show Answer

Q1177) When Cola Companies Coke and Pepsi, introduced Colas in mini bottles at a low price, the demand for Tea and Coffee is small tea stalls declined drastically. The Cross Elasticity between the Colas and Tea / Coffee is Show Answer

Q1178) If two products are good substitutes, the value of Cross Elasticity will be Show Answer

Q1179) The cross elasticity of demand between two perfect substitutes will be Show Answer

Q1180) Goods having positive Cross Elasticity are Show Answer

Q1181) Positive Cross Elasticity always implies that the goods are substitute goods. This statement is Show Answer

Q1182) If Cross Elasticity of Demand is Infinity, it means that the goods are Show Answer

Q1183) If Cross Elasticity of Demand = Zero, it means that the goods are Show Answer

Q1184) If Cross Elasticity of Demand between A and B is Zero, it means that between A and B Show Answer

Q1185) If the quantity demanded of Tea increases by 5% when the price of Coffee increases by 20%, the Cross Elasticity of demand between Tea and Coffee is Show Answer

Q1186) The Cross Elasticity of monthly demand for ink pen, when the price of gel pen increases by 25% and demand for ink pen increases by 50% is equal to Show Answer

Q1187) Cross Elasticity of Demand for Gel Pen when the Price of Refills increases by 20% and demand for Gel Pens falls by 30% is equal to Show Answer

Q1188) If the quantity demanded of Product X increases from 8 to 12 units in response to an increase in the price of Product Y from ? 23 to ? 27, the Cross Elasticity of Demand for X with respect to Price of Y is approximately Show Answer

Q1189) Which of the following is incorrect? Show Answer

Q1190) The Price Elasticity of Demand when fresh milk's price increases from ? 20 per litre to ? 30 per litre is equal to Show Answer

Q1191) What can be said about the Price Elasticity of Demand for Fresh Milk? Show Answer

Q1192) The Cross Elasticity of Demand for Cereals when the price of Fresh Milk increases from ? 20 to ? 30 is equal to Show Answer

Q1193) What can be said about Fresh Milk & Cereals? Show Answer

Q1194) The Cross Elasticity of Demand for Powdered Milk, when the price of Fresh Milk increases from ? 20 to ? 30 per litre is equal to Show Answer

Q1195) What can be said about Fresh Milk and Powdered Milk? Show Answer

Q1196) If Income of the Consumers increases by 50% and the quantity of Fresh Milk demanded increases by 30%. What is Income Elasticity of Demand for Fresh Milk? Show Answer

Q1197) We can say that Fresh Milk in economics sense is an example of Show Answer

Q1198) Price Elasticity of demand when Gel Pen's price increases from ? 10 to ? 15 per pen is Show Answer

Q1199) What can be said about the Price Elasticity of Demand for Gel Pens? Show Answer

Q1200) The Cross Elasticity of Demand for Refills when the price of Gel Pen increases from ? 10 to ? 15 is - Show Answer

Q1201) What can be said about Gel Pen and Refills? Show Answer

Q1202) Cross Elasticity of Demand for Ink Pen when the price of Gel Pen increases from ? 10 to ? 15 is equal to Show Answer

Q1203) What can be said about Gel Pen and Ink Pens? Show Answer

Q1204) If Income of the residents of locality increases by 50% and the quantity of Gel Pens demanded increases by 20%. What is income elasticity of demand for Gel Pen? Show Answer

Q1205) We can say that Gel Pen in economics sense is an example of Show Answer

Q1206) Price Elasticity of Demand (using Arc Method) when Price of X decreases from ? 20 per piece to ? 10 per piece will be Show Answer

Q1207) What can be said about the Price Elasticity of Demand for Commodity X? Show Answer

Q1208) Cross Elasticity of Demand for Commodity Y when the Price of X decreases from ? 20 per piece to ? 10 per piece will be Show Answer

Q1209) Cross Elasticity of Demand for Commodity Z when the price of X decreases from ? 20 per piece to ? 10 per piece will be Show Answer

Q1210) If Income of the Consumers increases by 50% and the demand for X increases by 20% what will be the Income Elasticity of Demand for X? Show Answer

Q1211) We can say that Commodity X in economic sense is an example of Show Answer

Q1212) Advertisement Elasticity is also known as Show Answer

Q1213) The responsiveness of a good's demand to changes in the Firm's spending on advertising is called Show Answer

Q1214) Advertisement Elasticity is the percentage change in Show Answer

Q1215) Advertising Elasticity is generally Show Answer

Q1216) Which of the following statements is correct? Show Answer

Q1217) Scientific way of estimating demand is called Show Answer

Q1218) Demand Forecasting helps in Show Answer

Q1219) Based on area, Forecasting can be classified as Show Answer

Q1220) Goods which are used for production of other goods Show Answer

Q1221) Goods which are used for final consumption Show Answer

Q1222) Goods which can be consumed more than once is called Show Answer

Q1223) Goods which cannot be consumed more than once is called Show Answer

Q1224) Smart Phone is an example of Show Answer

Q1225) Cooking oil is an example of Show Answer

Q1226) Tools and spare parts is an example of Show Answer

Q1227) Increase in Farm Production leads to increase in demand of fertilizers. This is an example of Show Answer

Q1228) The demand for a product which is independent of the demand for other goods is called Show Answer

Q1229) The Demand for a Firm's product when expressed as a percentage of Industry Demand signifies the ______ of the Firm Show Answer

Q1230) Demand for the product of a particular Firm is called Show Answer

Q1231) The Survey method where all potential customers are interviewed about their future purchase plans Show Answer

Q1232) The Survey method where scientifically chosen sample of potential customers are interviewed Show Answer

Q1233) The method in which the Salesmen are required to estimate expected sales in their respective territories Show Answer

Q1234) Expert opinions for demand forecasting is used in Show Answer

Q1235) Tools used by Delphi Technique to forecast demand based on Expert Opinions Show Answer

Q1236) Which of the following methods cannot be used for short term forecasting Show Answer

Q1237) Concept of giving the Consumers a specific sum of money and asking them to spend on goods with varying price, packing, display etc. is called Show Answer

Q1238) The method in which future demand is estimated by conducting market studies and experiments on consumer behaviour is known as Show Answer

Q1239) Which is the Classical Method for demand forecasting? Show Answer

Q1240) Graphical Method is also known as Show Answer

Q1241) The superior method of forecasting is Show Answer

Q1242) Economic indicators in demand forecasting is called Show Answer

Q1243) Barometric Method has a Show Answer

Q1244) What type of indicator is used in Barometric method of demand forecasting Show Answer

Q1245) Advance indications are given by Show Answer

Q1246) Indicators that move simultaneously with the level of economic activities is Show Answer

Q1247) Indicators that follow a change after some time lag Show Answer

Q1248) Supply can be referred as Show Answer

Q1249) The Supply of a product refers to Show Answer

Q1250) Supply of a Commodity is a Show Answer

Q1251) _______refers to the quantity of goods or services that Producers are willing and able to offer to the market at various prices during a period of time. Show Answer

Q1252) Supply refers to ______ Show Answer

Q1253) Supply refers to the quantity of goods or services, that ______ are willing and able to offer to the market at various prices during a period of time. Show Answer

Q1254) Supply Quantity is the same as Sales Quantity. This statement is Show Answer

Q1255) Supply refers to what Firms offer for sale, and not necessarily to what they succeed in selling. This statement is Show Answer

Q1256) To constitute Supply, the Producing Firms must have Show Answer

Q1257) Supply refers to the _____ by Producing Firms. Show Answer

Q1258) Period in which supply cannot be increased is called Show Answer

Q1259) _______ is the total volume of the commodity which can be brought into the market for sale at a short notice. Show Answer

Q1260) ______ refers to the quantity which is actually brought in the market. Show Answer

Q1261) Supply is different from Stock. This statement is Show Answer

Q1262) Stock is potential supply. Show Answer

Q1263) Stock refers to quantity _____ into the market, whereas Supply refers to quantity _______ into the market. Show Answer

Q1264) The meaning of time element in economics is _______ Show Answer

Q1265) Which of the following factors is not a determinant of Supply? Show Answer

Q1266) Which of the following factors is not a determinant of Supply? Show Answer