Economics Quiz 1 (B.Tech. CSE Even 2024)

Which of the following will not decrease the demand for a commodity?

• The price of a substitute decreases

• Income falls and the good is normal

• The price of a complement increases

• The commodity's price increases

The price elasticity of demand for a good will tend to be more elastic if

• the good is broadly defined (e.g., the demand for food as opposed to the demand for carrots).

• the good has relatively few substitutes.

• a long period of time is required to fully adjust to a price change in the good.

• none of the above are true.

Which of the following will cause a decrease in quantity demanded while leaving demand unchanged?

• An increase in the price of a complementary good.

• An increase in income when the good is inferior.

• A decrease in the price of a substitute good.

• An increase in the price of the good.

If consumer income declines, then the demand for

• normal goods will increase.

• inferior goods will increase.

• substitute goods will increase.

• complementary goods will increase.

If the price of a good increases, then

• the demand for complementary goods will increase.

• the demand for the good will increase.

• the demand for substitute goods will increase.

• the demand for the good will decrease.

The law of demand refers to the

• inverse relationship between the price of a commodity and the quantity demanded of the commodity per time period.

• direct relationship between the desire a consumer has for a commodity and the amount of the commodity that the consumer demands.

• inverse relationship between a consumer's income and the amount of a commodity that the consumer demands.

• direct relationship between population and the market demand for a commodity.

Which of the following is not a determinant of a consumer's demand for a commodity?

• Income

• Population

• Prices of related goods

• Tastes

If two goods are complements, then

• the cross-price elasticity of demand will be negative.

• the cross-price elasticity of demand will be zero.

• the cross-price elasticity of demand will be positive.

• an increase in the price of one good will increase demand for the other.

If a firm raises its price by 10% and total revenue remains constant, then

• the price elasticity of demand for its output is unitary.

• marginal revenue is equal to zero.

• quantity demanded has decreased by 10%.

• all of the above are correct.

If the price elasticity of demand for a firm's output is elastic, then the firm's marginal revenue is

• positive, and an increase in price will cause total revenue to increase.

• positive, and an increase in price will cause total revenue to decrease.

• negative, and an increase in price will cause total revenue to increase.

• negative, and an increase in price will cause total revenue to decrease.