Essentials of economics

Normally demand curve will have a ............... shape

• upward sloping

• downward sloping

• vertical

• Horizontal

If the quantity demanded of a commodity is unresponsive to change in prices, then the demand of that commodity is ________.

1. 
   

• 1. Perfectly inelastic

  2. 
     

• 1. Elastic

• unitary elastic

• inelastic

1. Law of demand shows a relation between the ___________.

• 1. Quantity demand and quantity supply of a commodity

• 1. Income and quantity demand of a commodity

• 1. Price and quantity of a commodity

• 1. income and price of a commodity

More quantity will be supplied without a change in its price.

1. 
   

• 1. increase in supply

• 1. Contraction in supply

• 1. Expansion in supply

• 1. Fall in supply

1. If the elasticity of supply is greater than one, the supply curve would be _______.

• 1. Touching Y-axis

• 1. Touching X-axis

• Passing through the origin

• vertical

When the price of a product falls by 10% and its demand rises by 30%, then the elasticity of demand is _________.

• 13

• 3

• 1.3

• 0.3

Which of the following is not a cause of the shift in demand for a product

• 1. Change in the price of substitutes

• 1. Change in the income of a consumer

• 1. Change in the price of a product

• none of the above

The demand curve that’s horizontal and parallel to the x-axis shows the elasticity of demand to be____.

• more elastic

• perfectly elastic

• perfectly inelastic

• less elastic

Elasticity of demand

• More than one

• less than one

• Equal to one

• None of the above

Movement from A to B

• Decrease in demand

• Increase in demand

• Extension of demand

• contraction of demand