Q. If the elasticity of supply is greater than one, the supply curve would be _______. Touching y-axisPassing through the originVerticalHorizontal Answer: Touching y-axis

Q. Would an increase in demand for a product cause the supply curve to shift in any direction? No effect on supplyChange in the slope of a supply curveThe supply curve will move to the rightThe supply curve will move to the left Answer: No effect on supply

Q. In case the price of a product and the total revenue from that product move in the same direction, then the demand is ____________. Perfectly elasticInelasticElasticUnrelated Answer: Inelastic

Q. Which of the following is not a cause of the shift in demand for a product? Change in the price of substitutesChange in the income of a consumerChange in the price of a productNone of the above Answer: Change in the price of a product

Q. When the elasticity of demand for a commodity is very low, it shows that the product ________. Has little importance in the total budgetIs a luxuryIs a necessityNone of the above Answer: Is a necessity

Q. When the price of a product falls by 10% and its demand rises by 30%, then the elasticity of demand is _________. 13 3 10 30 Answer: 3

Q. If the quantity demanded of a commodity is unresponsive to change in prices, then the demand of that commodity is ________. Perfectly inelasticElasticUnit elasticInelastic Answer: Perfectly inelastic

Q. Law of demand shows a relation between the ___________. Quantity demand and quantity supply of a commodityIncome and quantity demand of a commodityPrice and quantity of a commodityIncome and price of a commodity Answer: Price and quantity of a commodity

Q. Zubair has a special taste for college canteen is hotdogs. The owner of the canteen doubles the prices of hotdogs. Zubair did not respond to the increase in prices and kept on demanding the same quantity of hotdogs. His demand for hotdogs is: Perfectly elasticPerfectly inelasticElasticLess ...

Q. If demand is inelastic, a change in the price: Will change the quantity in same directionWill change total revenue in same directionWill change total revenue in the opposite directionWill not change quantity Answer: Will change total revenue in same direction

Q. The elasticity for the demand of durable goods is __________. ZeroEqual to unityGreater than unityLess than unity Answer: Greater than unity

Q. Which of the following is an assumption made while drawing the demand curve? The demand curve must be linearThe price of substitutes should not changeThe quantity demanded should not changeThe price of the commodity should not change Answer: The price of substitutes should not change