Demand and Supply Mcqs Test 01 Preparation Online Shani Malik — May 19, 2018 in Economics • add comment Demand and Supply Mcqs Test 01 Preparation Online 1. If demand is unitary elastic, a 25% increases in price will result in?A. No change in quantity demanded B. 25% decrease in quantity demandedC. 1% decrease in quantity demanded D. 25% change in total revenue Loading... 2. If elasticity of demand is very low it shows that the commodity is?A. (a) and (c) aboveB. A luxuryC. A necessity D. Has little importance in total budget Loading... 3. Normally a demand curve will have the shape?A. HorizontalB. VerticalC. Downward slopingD. Upward sloping Loading... 4. If quantity demanded is completely unresponsive to changes in price, demand is?A. ElasticB. InelasticC. Perfectly inelasticD. Unit elastic Loading... 5. Other things equal, if a good has more substitutes, its price elasticity of demand is?A. SmallerB. Zero C. Larger D. Unity Loading... 6. This is an assumption of law of demand?A. Supply should not change B. Quantity should not changeC. Income of consumer should not changeD. Price of the commodity should not change Loading... 7. Law of demand shows relation between?A. Quantity demanded and quantity suppliedB. Income and price of commodityC. Price and quantity of a commodityD. Income and quantity demand Loading... 8. The following are causes of shift in demand EXCEPT the one?A. Change in fashion B. change in income C. Change in prices of substitutesD. Change in price Loading... 9. Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is?A. 10% B. 1/3C. 3 D. 30% Loading... 10. When demand is perfectly inelastic, an increase in price will result in?A. An increase in total revenue B. A decrease in total revenue C. A decrease in quantity demandedD. No change in total revenue Loading... Loading...
