Q.          Demand is a function of: A.           Price    B.            Quantity C.            Supply ...

Q. Income elasticity of demand for normal good is always: A.           1              B.            More than one ...

Q. When price elasticity of demand for normal goods is calculated, the value is always: A.           Positive             ...

Q. This is an assumption of law of demand: Price of the commodity should not change             Quantity should not changeSupply should not change   Income of consumer should not change Answer: Income of consumer should not change

Q. When the quantity demanded of a goods is equal to the quantity supplied of that goods, then ___________. There is a surplusThe government is intervening in the marketThere is a shortageNone of the above Answer: None of the above

Q. An increase in the number of restaurants serving fast-food leads to _______. Growth in the demand of fast-food mealsIncrease in the supply of fast-food mealsIncrease in the price of fast-food mealsGrowth in the demand for substitutes of fast-food meals Answer: Increase in the supply of ...

Q. Which of the following metrics is not a constant factor while moving upwards along the supply curve? The price of the commodityThe number of sellersExpected future pricesCost of the resources used for producing that commodity Answer: The price of the commodity

Q. Because of increasing marginal costs, most supply curves ________. Have a positive slopeHave a negative slopeAre horizontalAre vertical Answer: Have a positive slope

Q. If the income of a consumer increases or the price of a complementary good falls, then the __________. The demand curve for the product shifts rightwardThe demand curve for the product shifts leftwardThe supply curve for the product shifts rightwardThe supply curve for the product shifts ...

Q. If price changes by 1% and supply changes by 2%, then the supply is ______. StaticIndeterminateInelasticElastic Answer: Elastic