Description : If the demand line drawn from a ridge in a flow mass curve does not intersect the curve again, it indicates that (A) Demand cannot be met by inflow (B) Reservoir was not full at the beginning (C) Both (A) and (B) (D) None of the above
Last Answer : Answer: Option A
Description : Consider the following situation in a flow mass curve study when demand line drawn from a ridge in the mass curve does not intersect the mass curve again. This means that : (a) The storage is not ... (c) The reservoir was not full at the beginning (d) The reservoir is wasting water by spill
Last Answer : (b) The demand cannot be met by the inflow as the reservoir will not refill
Description : Name the curve which shows the quantity of products a seller wishes to sell at a given price level. (1) Demand curve (2) Cost curve (3) Supply curve (4) None of these
Last Answer : (3) Supply curve Explanation: The supply curve shows the relationship between the price of a good and the quantity supplied, holding constant the values of all other variables that affect supply. Each point on the curve shows the quantity that sellers would choose to sell at a specific price.
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : Which of the following statement is true (a) Monopolist are price takers ; (b) Monopoly firm earn abnormal profits; (c) A Monopoly firm faces straight demand line ; (d) Supply curve of a monopoly firm is positive sloped
Last Answer : (a) Monopolist are price takers ;
Description : In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve
Last Answer : (a) Point of interaction of aggregate demand and aggregate supply curve;
Description : The individual demand and supply curve of a product are Dx = 12-2px, Sx=3+5px, where Px stand for price and Dx and Sc respectively stands for quantity demanded and quantity supplie(d) If there are 5000 consumers and 1000 suppliers ... be the equilibrium price (a) `4 ; (b) `5 ; (c) `3 ; (d) `4.5
Last Answer : ; (c) `3 ;
Last Answer : Supply curve
Description : Which one of the following ratios is likely to be affected the most on account of price level changes ? (A) Current Ratio (B) Inventory Turnover Ratio (C) Debtors’ Turnover Ratio (D) Fixed Assets Turnover Ratio
Last Answer : Answer: Debtors’ Turnover Ratio
Description : Which of the following is not an element of marketing mix ? (A) Product (B) Price (C) Promotion (D) Product life cycle
Last Answer : Answer: Product life cycle
Description : At what price the stock is valued under conventional method ? (A) At cost price (B) At market price (C) At cost price or market price whichever is lower (D) At cost price or market price whichever is higher
Last Answer : Answer: At cost price or market price whichever is lower
Description : Some organizations have escalator clause in their labour agreements. What does this clause provide for ? (A) Automatic increase in wage/salary depending on seniority (B) Wage increase depending on output ... index (D) Automatic increase in wage/salary depending on increase in profits of the firm
Last Answer : Answer: Automatic increase in wage/salary depending on increase in profits of the firm
Description : The liability of the shareholders of a public limited company is limited to the extent of– (A) Par value of the share (B) Paid up value of the shares (C) Market price of the shares (D) Intrinsic value of the shares
Last Answer : Answer: Paid up value of the shares
Description : The product range is widest in case of– (A) Chain store (B) Departmental store (C) Speciality shop (D) One price shop
Last Answer : Answer: Departmental store
Description : What is Quoted price?
Last Answer : It is the price of a share commodity as stated in the official list of the stock exchange commodity market.
Description : A Monopoly‟s demand curve is (a) Same as its average revenue curve ; (b) Same as its supply curve; (c) Same as its cost curve ; (d) Same as that of the factor inputs
Last Answer : (a) Same as its average revenue curve ;
Description : Movement along the same demand curve is know as - (1) Extension and Contraction of Demand (2) Increase and Decrease of Demand (3) Contraction of supply (4) Increase of supply
Last Answer : (2) Increase and Decrease of Demand Explanation: A shift in the demand curve is caused by a factor affecting demand other than a change in price. If any of these factors change then the amount ... of a change in supply conditions. The factors affecting demand are assumed to be held const ant.
Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve
Last Answer : (b) Law of demand
Description : An improvement in technology would shift (a) the demand curve inward ; (b) the demand curve outward ; (c) the supply curve inward (d) the supply curve outward
Last Answer : (d) the supply curve outward
Description : Equilibrium state is achieved at (a) The peak point of supply curve ; (b) The bottom point of demand curve; (c) The inflection point of demand curve ; (d) The intersection of demand and supply curve
Last Answer : (d) The intersection of demand and supply curve
Description : Change in cost of production of the concerned goods causes (a) The demand curve to shift ; (b) The supply curve to shift ; (c) Increase in quantity demanded; (d) Decrease in quantity supplied
Last Answer : (b) The supply curve to shift ;
Description : Equilibrium state is achieved at ………………… (a) The peak point of supply curve ; (b) The bottom point of demand curve (c) The inflation point of demand curve ; (d) The intersection of demand and supply curve
Description : Movement along the same demand curve is know as (1) Extension and Contraction of Demand (2) Increase and Decrease of Demand (3) Contraction of supply (4) Increase of supply
Last Answer : Increase and Decrease of Demand
Description : Curve `b^(2)x^(2) + a^(2)y^(2) = a^(2)b^(2) and m^(2)x^(2)- y^(2)l^(2) = l^(2)m^(2)` intersect each other at right-angle if:
Last Answer : Curve `b^(2)x^(2) + a^(2)y^(2) = a^(2)b^(2) and m^(2)x^(2)- y^(2)l^(2) = l^(2)m^(2)` intersect each ... ^(2)+m^(2)` D. `a^(2)+b^(2) = l^(2)-m^(2)`
Description : Which one of the following not a feature of Indifference Curve? (1) They do not intersect each other (2) They slope downwards to the right (3) They are parallel to each other (4) They are concave to each other
Last Answer : (4) They are concave to each other Explanation: Indifference curves are usually convex to the on-gin. In In other words, the indifference curve is relatively flatter in its righthand portion and ... convexity of an indifference curve depends on the rate of fall in the marginal rate of substitution.
Description : In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC
Last Answer : ; (d) MR curve intersect SMC from below and P is equal to or more than AVC
Description : Which one of the following is not a feature of Indifference Curve? (1) They do not intersect each other (2) They slope downwards to the right (3) They are parallel to each other (4) They are concave to each other
Last Answer : They are concave to each other
Description : If Pepsi sets the price of its six pack to match exactly the price of Coca - Cola's, Pepsi is using a ------ pricing method. A)demand -oriented B)cost -oriented C)experience curve D)competition -oriented
Last Answer : D)competition -oriented
Description : If Wilson Sporting Goods faces the classic demand curve characteristic for most products, as it raises the price of its tennis rackets, the: A)quantity demand goes down. B)demand remains constant. C)quantity demands increases.
Last Answer : A)quantity demand goes down.
Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes
Last Answer : (4) When only price of the commodity changes Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that ... only when there is a change in other determinants of demand, other than price of the commodity.
Description : A unit price elastic demand curve will touch - (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis
Last Answer : (2) neither price axis, nor quantity axis Explanation: Unit elastic refers to an elasticity alternative in which any percentage change in price cause an equal percentage change in quantity. In other ... However, the unit price elastic demand curve does not touch either price axis or quantity axis.
Description : When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will - (1) decrease (2) increase (3) remain the same (4) contract
Last Answer : (2) increase Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to ... is movement along a demand curve when a change in price causes the quantity demanded to change.
Description : A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to - (1) Zero (2) One (3) Less than one (4) Infinity
Last Answer : (4) Infinity Explanation: Price elasticity of demand measures consumer response to price changes. If consumers are relatively sensitive to price changes, demand is elastic: if they are relatively ... keeps changing with the price. So the coefficient of price elasticity of demand is infinity.
Description : The demand curve shows that price and quantity demanded are - (1) directly related only (2) directly proportional and also directly related (3) inversely proportional and aslo inversely related (4) inversely related only
Last Answer : (3) inversely proportional and aslo inversely related Explanation: Law of demand states that consumers buy more of a good when its price is lower and less when its price is higher. It states that ... good demanded by the consumer will be negatively correlated to the change in the price of the good.
Description : The demand curve for a Giffen good is (1) upward rising (2) downward falling (3) parallel to the quantity axis (4) parallel to the price axis
Last Answer : (1) upward rising Explanation: A Giffen good is a good whose consumption in-creases as its price increases. (For a normal good, as the price increases, consumption decreases.) Thus, the ... a price changes the income effect outweighs the substitution effect and this leads to perverse demand curve.
Description : The kinked demand curve explains A.Price rigidity B.Price flexibility C.Demand rigidity D.Demand flexibility
Last Answer : A.Price rigidity
Description : If the demand curve confronting an individual firm is perfectly elastic, then firm is A.Price taker B.Adjust output C.Adjust price D.All of these Answer Repor
Last Answer : A.Price taker
Description : If total revenue rises when price falls, the demand curve is (a) Elastic (b) Unitary elastic (c) Inelastic (d) None of the above
Last Answer : (a) Elastic
Description : What would happen to the demand curve when there is an increase in the price of substitute products?
Last Answer : Outward shift
Description : With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted shaped demand curve
Last Answer : D)Products with elastic demand
Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward
Last Answer : (a) the price of one good changes
Description : An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left
Last Answer : (a) quantity demanded to decrease
Description : In case of horizontal demand curve , price elasticity of demand is (a) equal to zero (b) equal to one © equal to two (d) infinite
Last Answer : (a) equal to zero
Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases
Last Answer : © price falls and demand also falls
Description : At a given time and in a given marketplace, the entire market demand curve indicates the (a) quantity of a good consumers would be willing and able to purchase at a given price. (b) quantity of a ... a given price (d) quantity of a good consumers have purchased at a series of prices over the year.
Last Answer : (b) quantity of a good consumers would be able to purchase at a series of prices.
Description : Demand curve of an Oligopoly firm is characterized by (a) Horizontal to X axis ; (b) Kink at the price ; (c) U shaped curve ; (d) A liner line
Last Answer : (b) Kink at the price ;
Description : Market demand curve for a commodity is a (a) Horizontal summation of all the individual demand curve for that product (b) Summation of demand curve of competitive products (c) Demand curve of average demand and price of previous six months (d) Projected demand schedule for next three months
Last Answer : (a) Horizontal summation of all the individual demand curve for that product
Description : If price of Choco bar decreases we except (a) The quantity demanded to increase ; (b) Quantity demanded to decrease; (c) Demand curve to shift left ; (d) No change in quantity demanded
Last Answer : (a) The quantity demanded to increase ;
Description : Change in price of the goods cause (a) Change in quantity demanded ; (b) Shift in demand curve ; (c) Change in price; (d) No effect on quantity demanded
Last Answer : (a) Change in quantity demanded ;