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4

Price elasticity of demand can be measured in the following way:

A. Percentage change in quantity demanded of a commodity divided by percentage change in price of that commodity

B. Change in quantity demanded of a commodity divided by change in price of that commodity

C. Percentage change in price of a commodity divided by percentage change in quantity demanded of that commodity

D. None of that commodity

Correct Answer :

A. Percentage change in quantity demanded of a commodity divided by percentage change in price of that commodity


Related Questions

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4

In modern cost theory, AVC= b1 and MC= b1 in the range of:

A. Excess capacity

B. Reserve capacity

C. Limited capacity

D. None of the above

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4

If a person behaves against the laws of economics then:

A. He should be condemned

B. He may lose his respect from society

C. He should be punished

D. He should not be punished or even criticised

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4

Efficient allocation of resources is likely to be achieved under:

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Any market form

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4

A budget line shows:

A. Price of commodity X in terms of Y

B. Price of commodity Y in term of X

C. Income of the consumer

D. All of the above

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4

In case of monopoly, the price charged against the additional unit is:

A. Not different

B. Same

C. Not same

D. Zero

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4

In a perfectly competitive market, suppliers must know:

A. The incomes of consumers

B. The price of the good

C. What other commodities households could substitute for the good

D. Consumers expectations of the future

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4

Marshalls definition of economics was strongly criticised by:

A. Adam Smith

B. Prof.Pigno

C. Prof. Robbins

D. J.B.Clark

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4

In market sharing cartel model, cartel determines the shares of:

A. the individuals

B. industry

C. firms

D. associations

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Demand is elastic when the coefficient of elasticity is:

A. greater than zero

B. less than one

C. greater than one

D. less than one

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4

Increasing returns is not caused by:

A. Specialization of labor

B. Technological advancement

C. Marketing economics

D. Varying factor proportions

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4

Cournot equilibrium is attained where two reaction curves:

A. Repel each other

B. Represent each other

C. Intersect each other

D. None of the above

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4

In modern theory, LAC = LMC after the attainment of:

A. Maximum optimal scale

B. Average optimal scale

C. Minimum optimal scale

D. None of the above

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4

When the slope of a demand curve is infinite (also known as horizontal demand curve) then elasticity will be:

A. Zero (perfectly inelastic)

B. Equal to one (unitary elastic)

C. Infinite (perfectly elastic)

D. None of the above

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If a straight line supply curve makes an intercept on the Y-axis, elasticity of supply is:

A. Equal to unity

B. Less than unity

C. More than unity

D. Zero

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4

The water diamond paradox was firstly resolved with the help of:

A. Labor theory of value

B. Individual theory of value

C. Producer theory of value

D. Consumer theory of value

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4

Efficient allocation of resources is achieved to a greater extent under:

A. Monopoly

B. Perfect competition

C. Monopolistic competition

D. Oligopoly

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4

The basic subject matter of economics is:

A. Money

B. Capital resources

C. Scarcity

D. Inflation

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The substitution effect works to encourage a consumer to purchase more of a product when the price of that good is falling because:

A. The consumers real income has increased

B. The consumers real income has decreased

C. The product is now relatively less expensive than before

D. Other products are now less expensive than before

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Under perfect competition, a firm will be in equilibrium if:

A. MC = MR

B. MC cuts the MR from below

C. MC rises when it cuts the MR

D. All the above three conditions are fulfilled

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4

The standard form of demand function is:

A. Q = a- bP

B.

C. Y = a- bP

D. Q = a+ bP

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Which of the following is not a feature of isoproduct curves?

A. Are downward sloping to the right

B. Show different input combination producing the same output

C. Intersect each other

D. Are convex to the origin

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The relationship between AC and MC curves depend upon the behavior of:

A. AP curves

B. MP curves

C. Both of them

D. None of them

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4

Who formulated the Post-Keynsian Theory of Distribution and Growth?

A. J.M.Keynes

B. N.Kaldor

C. C.P.Kindleberger

D. Irving Fisher

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4

The monopolist firm is price setter. The price setter firm is one which:

A. Can influence the market price

B. Cannot influence the market price

C. Can sell at zero price

D. None of the above

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4

A shift in the demand for a product is likely to result from a change in:

A. The products price

B. Expectations

C. The prices of factors of production used to produced it

D. Production technology

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4

In monopolistic competition, the individual demand curve is also known as:

A. Planned products curve

B. Planned material curve

C. Planned costs curve

D. Planned sales curve

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Under perfect competition, at equilibrium, marginal cost is:

A. Less than marginal revenue

B. Equal to marginal revenue

C. More than marginal revenue

D. None of the above

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Price effect occurs on the higher IC in case of:

A. Slutsky approach

B. Hicksian approach

C. Marshallian approach

D. None of the above

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Moving down along a linear demand curve:

A. Demand becomes less elastic

B. Elasticity does not change

C. Demand has unitary elasticity

D. Demand becomes more elastic

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The game theory takes into consideration:

A. Reaction of rival firms

B. Reactions of people

C. No reaction of rival firms

D. None of the above