MCQs Elasticity of Demand

                

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

a.       Positive

b.      Negative

c.       Constant

d.      Greater than one

22. Income elasticity of demand for normal good is always:

a.       1     

b.      More than one

c.       Negative

d.      Positive

23.Demand is a function of Price, income, supply, none of these

24. If price and total revenue move in the same direction, then demand is:

a.       Inelastic

b.      Elastic

c.       Unrelated

d.      Perfected elastic

25. 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

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

a.       Price of the commodity should not change

b.      Quantity demanded should not change

c.       Income of the consumer should not change

d.      None of these

27.  Which one is increasing function of price:

a.       Demand

b.      Utility

c.       Supply

d.      Consumption

28.  It describes the law of supply:

a.       Supply curve

b.      Supply schedule

c.       Supply function

d.      All the three

29.  Supply curve will shift when:

a.       Price falls

b.      Price rises

c.       Demand shifts

d.      Technology change

30.  If Price changes by 10% and supply changes by 20% the supply is

A.      Elastic

B.      Inelastic

C.      Intermediate

D.     Static