Business Maths 11(1)

The income elasticity when the quantity demand for a good is increased by 10% resulting in the increase of income by 8% is

• 1

• 1.25

• 1.5

• 1.75

• Elastic demand

• Inelastic demand

• Unit elasticity

• Perfectly inelastic

If the demand function of a good is given by P = 100 - 0.1Q, then the arc price elasticity of demand when price decreases from Rs. 50 to Rs. 40 is

If the demand function is P = 1200 - 1.5Q, then the price elasticity of demand when

P = 900 is

• -1

• -2

• -3

• -4

• P = 1

• P = 2

• P = 3

• P = 4

In manufacturing a certain product, if the fixed cost is Rs. 50,000 and a variable cost per unit is Rs. 100, then the total profit by selling 1000 units if each unit is sold for Rs. 200 is

• Rs. 30,000

• Rs. 40,000

• Rs. 50,000

• Rs.60,000

• Rs. 11

• Rs. 15

• Rs. 19

• Rs. 0

If a firm sells a single product for Rs. 70 per unit. Variable cost per unit are Rs. 20 for materials and Rs. 30 for labour. Annual fixed cost is Rs. 1, 00, 000, then the profit after selling 30,000 units is

• Rs. 2,00,000

• Rs. 3,00,000

• Rs. 4,00,000

• Rs. 5,00,000

Which of the following is false ?

• Total cost - Fixed cost = Variable cost

• Total cost - variable cost = Fixed cost

• Variable cost = Total cost + Fixed cost

• Fixed cost + Variable cost = Total cost

Which of the following is false ?

• Profit function = Revenue function - Total cost function

• Profit function = Revenue function + Total cost function

• Revenue function = Profit function + Total cost function

• Total cost function = Revenue function - Profit function