Demand and Supply Mcqs Test 03 Preparation Online

1. If price and total revenue move in the same direction, then demand is?

A. Unrelated

B. Inelastic

C. Perfectly elastic

D. Elastic

2. When price elasticity of demand for normal goods is calculated, the value is always?

A. Negative

B. Constant

C. Positive

D. Greater than one

3. An increase in demand would cause supply curve to?

A. No effect on supply

B. Shift to the right

C. Shift to the left

D. Change in slope of supply curve

4. Income elasticity of demand for normal good is always?

A. Negative

B. Positive

C. More than one

D. 1

5. Demand is a function of?

A. Quantity

B. Price

C. Supply

D. None of these

6. Which one is the assumption of law of demand?

A. Quantity demanded should not change

B. Price of the commodity should not change

C. None of these

D. Income of the consumer should not change

7. Which one is increasing function of price?

A. Consumption

B. Utility

C. Supply

D. Demand

8. Supply curve will shift when?

A. Technology change

B. Price falls

C. Demand shifts

D. Price rises

9. What does price elasticity of demand measure?

A. Change in price caused by changes in demand

B. The rate of change of sales

C. The responsiveness of demand to price changes

D. The value of sales of a given price

10. It describes the law of supply?

A. All the three

B. Supply curve

C. Supply schedule

D. Supply equation

Demand and Supply Mcqs Test 03 Preparation Online

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