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Economics Demand and Supply Set-1

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1. Normally a demand curve will have the shape:




2. Law of demand shows relation between:




3. This is an assumption of law of demand:




4. If quantity demanded is completely unresponsive to changes in price demand is:




5. Other things equal if a good has more substitutes its price elasticity of demand is:




6. Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is:




7. If elasticity of demand is very low it shows that the commodity is:




8. When demand is perfectly inelastic an increase in price will result in:




9. If demand is unitary elastic a 25% increases in price will result in:




10. Irrespective of price Sofia always spends Rs. 100 a week on ice cream we conclude that:




11. When cross elasticity of demand is a large positive number one can conclude that:




12. If demand is inelastic a change in the price:




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




14. Which of the following is a demand function?




15. 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:




16. Price and demand are positively correlated in case of:




17. The elasticity of demand of durable goods is:




18. The elasticity of demand of durable goods is:




19. Mr. Raees Ahmad bought 50 litres of petrol when his monthly income was Rs. 25000. Now his monthly income has risen to Rs. 50000 and he purchases 100 litre of petrol. His income elasticity of demand for petrol is:




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




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




22. Demand is a function of:




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




24. What does price elasticity of demand measure?




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




26. Which one is increasing function of price:




27. It describes the law of supply:




28. Supply curve will shift when:




29. An increase in demand would cause supply curve to:




30. If price changes by 1% and supply changes by 2% then supply is:




31. If elasticity of supply is greater than one. Supply curve will be:




32. Supply surve:




33. During a particular year farmers experienced a dry weather if all other factors remain constant farmers supply curve for wheat will shift to:




34. When supply of a commodity increases without change in price it is called:




35. What best explains a shift in market supply curve to the right?




36. Economic problems arise because:




37. Which is not an essential condition for an economic problem to arise?




38. Which is not a central problem of an economy?




39. A mixed economy is characterised by the co-existence of:




40. Which is not an essential feature of a socialist economy?




41. Which of the following is incorrect?




42. Microeconomics deals with the:




43. Which of the following is Microeconomics concerned with?




44. Formulation of an economic theory involves:




45. An economic theory is:




46. Identify the aspect of taxation which is related to normative economics:




47. Demand for a commodity refers to a: