As per total outlay method, demand is said to be elastic if as result of change in price total outlay (a) Increases ; (b) Decrease ; (c) Remain same ; (d) None

As per total outlay method, demand is said to be elastic if as result of change in price total outlay (a) Increases ; (b) Decrease ; (c) Remain same ; (d) None 
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Answer :

(c) Remain same ;
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If price of coffee falls leading to increase in total outlay on coffee, the demand of coffee is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

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Last Answer : (a) Elastic ;

If price of X falls leading to fall in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

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If price of sugar fills leading to fall in total outlay on sugar, the demand of sugar is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

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Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of Coffee rises to `400 per kg. the demand for Tea goes to 6 Kg. and that of Coffee falls to 1Kg. The elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3

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If the price of vegetable sandwich rises from `6 per piece to `12 per piece as a result of which the daily sales decreases from 800 to 400 pieces per day. The price elasticity of demand can be estimated as (a) 0.5 ; (b) 1.5 ; (c) 3.0 ; (d) 2.5

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When the price of complementary products increases, the demand of the other product will (a) Falls ; (b) Increases ; (c) Remains same ; (d) Increases by 25%

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Very short period is the market condition where the supply remain perfectly (a) Elastic ; (b) Inelastic ; (c) Unity elastic ; (d) Elasticity less than 1

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If the price elasticity of demand of Chicken is +.95. then a 20% increase in price of chicken will lead to in quantity demanded of chicken at that price (a) 19 increase ; (b) 19% decrease ; (c) 20.95% increase ; (d) 20.6% decrease

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An increase in price will result in an increase in total revenue if (a) Percentage change in quantity demanded in greater than the percentage change in price (b) Percentage change in quantity demanded is less than the percentage change in price (c) Percentage change in quantity demanded is equal to the percentage change in price (d) None

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Under perfect market conditions a firm is said to be in equilibrium where (a) Total output is equal to total demand ; (b) Profit is the maximum; (c) Where the total revenue is maximum ; (d) Where total average cost is the minimum

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Under perfect market conditions an Industry is said to be in equilibrium where (a) Total output is equal to total demand ; (b) Profit is maximum (c) Where the total revenue is maximum ; (d) Where total average cost is the minimum

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If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that (a) Cross price elasticity of demand is negative and both the products are complementary to each other; (b) Cross price elasticity of demand is negative and the goods are substitute; (c) Cross price elasticity is positive and the products are complementary to each other ; (d) None of these

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When the Demand curve of a pure monopoly firm is elastic, MR will be (a) Negative ; (b) Positive ; (c) Zero ; (d) Any of these

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If the consumption of a product can be postponed for the time being (a) The demand for the product will be inelastic (b) The demand for the product will be relatively elastic (c) The demand for the product will be perfectly elastic (d) The demand for the product will be perfectly inelastic

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If prices of Eggs rises from `25 per dozen to `30 per dozen, the demand for vegetable burger increases from 30 per day to 40 per day, then the cross elasticity of eggs and vegetable burger is (a) 1.5 ; (b) 1.25 ; (c) 1.65 ; (d) 1.86

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A goods can be considered a normal goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

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Last Answer : (a) An increase in demand ;

A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

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What will happen if a firm in perfect competitive market, increase its output by 50% (a)Total sales revenue will also increase by 50% ; (b) (b)Selling price will come down by 50%; (c)Total sales revenue will decrease by 50% ; (d)Profit will increase by 25%

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Last Answer : (a)Total sales revenue will also increase by 50% ;

The demand for a product is 25 units when the price is `10, however the demand rises to 26 when the price is reduced to `9.9 per unit. The marginal revenue from production and sale of additional unit from 25 to 26 is (a) `7.4 ; (b) `(16) ; (c) `10 ; (d) `257.6

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Last Answer : (a) `7.4 ;

If both the disposal income as well as number of suppliers of a product rises, the equilibrium (a) Price remain same ; (b) Price will go up ; (c) Quantity will go up ; (d) Quantity will go down

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Last Answer : (c) Quantity will go up ;

If the supply of a product remain same with the increase in price, the possible reasons can be (a) Apprehension of further price hike ; (b) Limited production facility; (c) Commodity being a rare commodity ; (d) All the three

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Last Answer : (d) All the three

Shift in supply curve is cause by (a) Change in citrus paribus conditions ; (b) Increase in price; (c) Decrease in price ; (d) Change in consumer income

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Last Answer : (a) Change in citrus paribus conditions ;

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

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Last Answer : (a) Change in quantity demanded ;

Change in consumers tastes and preference causes – of the particular goods (a) Change in quantity demanded ; (b) Shift in demand curve ; (c) Change in price ; (d) No effect on quantity demanded

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Last Answer : (b) Shift in demand curve ;

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Last Answer : (a) Due to change in price only ;

The coefficient of price elasticity of demand is calculated as……….. (a) The change in price divided by the change in quantity demand (b) The percentage change in quantity demand by the percentage change in price (c) The change in quantity demanded by the change in price (d) The percentage change in price by the percentage change in demand

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The measurement of sensitivity of quantity demand to change in price is calle(d) (a) Price elasticity ; (b) Income elasticity ; (c) Expansion in demand ; (d) None

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Last Answer : (a) Price elasticity

If the price elasticity of a product is greater than 1, we can say that (a) The products demand is sensitive to price variation; (b) Product demand is insensitive to price variation; (c) Demand and price move in same directions ; (d) None of this

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