When at a given price, the quantity supplied of a commodity is more than the quantity demanded, there will be:
An upward pressure on price
A downward pressure on price
Price will remain unaffected
All of the above
Correct Answer :
B. A downward pressure on price
Related Questions
Which of the following is not a property of indifference curve?
Convex to the origin
Slopes downwards to the right
Parallel to each other
Cannot intersect each other
Price discrimination is possible:
When elasticities of demand in different markets are the same at the ruling price
When elasticities of demand are different in different markets at the ruling price
When elasticities cannot be known
When elasticities of demands are zero in different markets at the rulling price
The addition or increment to the total cost involvesd in expanding or contracting output by one unit is called:
Fixed cost per unit
Variable cost per unit
Total cost per unit
Marginal cost
If the supply curve is not a straight line but curvilinear, the elasticity on all points of the supply curve is:
Equal
Different
Zero
Infinity
When total product (TP) is maximum:
MP is negative
MP is infinite
MP is zero
None of the above
A shift in the demand for a product is likely to result from a change in:
The products price
Expectations
The prices of factors of production used to produced it
Production technology
A demand curve is not related to:
The price of the commodity
The time period
The price of substitutes
Any of the above
If there are many firms producing similar but differentiated products, the competition is generally said to be:
Oligopoly
Pure competition
Perfect competition
Monopolistic competition
The pay-off matrix shows:
Possible outcomes
Possible benefits
Possible losses
None of them
In monopolistic competition, the real differentiation in products is due to difference in:
Style
Consumer
Cost
Material
Because of selling costs, the demand curve of a firm shifts:
Downward
Upward
Horizontal
Straight line
One way the government can induce a monopolist to expand his output is by imposing:
A specific tax on the monopolists output
A price ceiling that make the monopolist lower his price
A price floor that make the monopolist raise his price
A heavy tax on the monopolists profit
A vertical supply curve parallel to the price axis implies that the elasticity of supply is:
Zero
Infinite
Equal to one
Greater than zero but less than infinite
The sufficient condition of firms equilibrium requires:
none of the above
The income consumption curve (ICC) is the locus of points of consumer equilibrium resulting:
Only when the price of commodity X changes
Only when the price of commodity Y changes
Only when the consumers income is varied
None of the above
The minimization of costs subject to output requires equilibrium at the lowest:
Isoquant line
Isocost line
Indifference curve
Price line
Which of the following formulae explain the term average revenue?
Total units /No. of Revenues
Total Revenue/No. of Units
Marginal Revenue × Units
Total Units/ Price
With the change in the factor prices, the slope of the expansion path will:
Not change
Also change
Increase
Decrease
Least cost combination of two factor inputs is achieved at a point where:
Budget line cuts the isoquant
Budget line is below the isoquant
Budget line is tangent with isoquant
None of the above
The kinked demand curve comes into being where:
Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other
Proportional demand curve (PDC) and individual demand curve (IDC) are parallel to each other
Proportional demand curve (PDC) and individual demand curve (IDC) repel each other
None of the above
In case of complementary factors, the isoquants are:
L-shaped
J-shaped
M-shaped
V-shaped
The line from the origin to a point on an isoquant shows:
The wages employment ratio
The capital rent ratio
The rent labor ratio
The capital labor ratio
Duopoly is a market where there are:
Two sellers
A few sellers
Five sellers
Many sellers
If the factors have to be employed in a fixed ratio, then the elasticity of substitution under Leontief technology is:
One
Zero
Two
Five
The concept of product differentiation was firstly introduced by:
Smith
Kaldor
Sraffa
Marshal
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price:
Equal to one
Greater than one
Smaller than one
Zero
Marshallian approach is also known as:
Cardinal approach
Ordinal approach
Consumer approach
Production approach
The law of variable proportions comes into being when:
All factors are variable
There is a fixed factor and variable factor
All factors are non-variable
None of the above
Monopolistic firm can fix:
Both price and output
Either price or output
Neither price nor output
None of the above
The slope of isocost line (budget line) shows:
Capital labor ratio
Labor wage ratio
Factor price ratio
Factor labor ratio