Description : In question No. 201 if at `15,000, the dealer is prepared to supply on 1250 sets of TV the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.75 ; (d) 1.4
Last Answer : (a) 1 ;
Description : In question No. 201 if at `15,000, the dealer is prepared to supply on 1100 TV sets, the elasticity of supply is (a) 1 ; (b) 2 ; (c) 0.4 ; (d) 1.5
Last Answer : ; (c) 0.4 ;
Description : 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
Last Answer : (a) 0.5 ;
Description : If the price of burger rises from `12 per piece to `20 per piece as a result of which the daily sales decreases from 300 to 200 pieces per day. The price elasticity of demand can be estimated as (a) 0.5 ; (b) 0.8 ; (c) 0.25 ; (d) 2.10
Description : A manufacture undertakes to supply 2000 pieces of a particular component at Rs.25 per piece. According to his estimates, even if 5% fail to pass the quality tests, then he will make a profit of 25%. However as it turned out, ... A. Rs 12,000 B. Rs 13,000 C. Rs 14,000 D. Rs 15,000 E. None f these
Last Answer : Answer - B. Rs 13,000 Explanation: 5% of 2000=100 so 2000-100=1900 so,if he sells 1900 he will get 25% profit cost per piece rs 25 so 25x 1900 don't solve here if 125% . ... /125=38000=CP if 50% rejected,only 1000 pieces sold so 1000 25=25000=SP loss=cp-sp= 38000-25000=13000
Description : 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 ... elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3
Last Answer : (c) 5 ;
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 ;
Description : Supply curve passing through any point on Y axis(Price) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero
Last Answer : (b) More than 1
Description : 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
Last Answer : (a) `7.4 ;
Description : The quantity that an individual supplier is prepared to supply over a period of time is a function of (a) Price of the product ; (b) Cost of production of the product ; (c) Both ; (d) None
Last Answer : ; (c) Both ;
Description : According to law of supply ……….. (a) Higher the price higher the production of the product; (b) Higher the price lower the cost of production ; (c) Lower the price lower the demand for the product; (d) Higher the price higher the quantity the seller is prepared to supply in market
Last Answer : (d) Higher the price higher the quantity the seller is prepared to supply in market
Description : The maximum quantity that a supplier is prepared to supply in the market at a given price is called (a) Economic order quantity ; (b) Optimum quantity ; (c) Supply quantity ; (d) Both or quantity
Last Answer : ; (c) Supply quantity ;
Description : Very short period is the market condition where the supply remain perfectly (a) Elastic ; (b) Inelastic ; (c) Unity elastic ; (d) Elasticity less than 1
Last Answer : (b) Inelastic ;
Description : A supply curve passing through any point on X axis(quantity) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just one ; (d) Zero
Last Answer : (a) Less than 1 ;
Description : A supply curve passing through the origin will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero
Last Answer : (c) Just One ;
Description : Elasticity of supply depends upon (a) Nature of the commodity ; (b) Production technology ; (c) Future outlook of prices (d) All the three
Last Answer : (d) All the three
Description : If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is (a) 0.45 ; (b) 0.25 ; (c) +0.44 ; (d) -0.30
Last Answer : (b) 0.25 ;
Description : If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is (a) 1.5 ; (b) 1.25 ; (c) 1.0 ; (d) 1.59
Last Answer : (b) 1.25 ;
Description : A dealer buys an article marked at Rs. 50,000 at 25% and 10% successive discount. He spends Rs. 5000 on its repair and sells it for Rs. 50,000. What is his loss or gain percentage? 1. 33.63% loss 2. 26.43% gain 3. 1.25% gain 4. 29.03% 5. 27.13% loss
Last Answer : CP of the article
Description : Ishath bought 15 pieces of [email protected],500/- each and sold all of them at the total price of Rs.81, 000/-. What is the percent profit earned in the deal? a) 18.66 b) 20 c) 25 d) 36 e) None of these
Last Answer : Total cost of 15 pieces of Mobiles= 15×4500 = Rs. 67500 Total Sales prices of 15 pieces of Mobiles= Rs. 81000 Profit% = 81000 – 67500 / 67500 × 100 = 13500/67500 × 100 = 20% Answer: b)
Description : The Supply function of a product x is as Sx = 5px + 3. Where Px stand for price. The quantity supplied corresponding to price of `2 will be …………… (a) 18 ; (b) 13 ; (c) 15 ; (d) 23
Last Answer : (b) 13 ;
Description : The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant
Last Answer : (a) Increases at higher price ;
Description : X a consumer spends his entire income on two commodities A and (B) if price of A increases by 10% and his expenditure on item B remains same, then the price elasticity of item A is (a) 1 ; (b) < 1 ; (c) > 1 ; (d) ≥
Description : 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 ... price elasticity is positive and the products are complementary to each other ; (d) None of these
Last Answer : (a) Cross price elasticity of demand is negative and both the products are complementary to each other;
Description : If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated
Last Answer : (a) Complementary to each other ;
Description : 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
Last Answer : (a) 19 increase ;
Description : 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
Last Answer : (a) The products demand is sensitive to price variation;
Description : Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits
Last Answer : (c) Cost of production ;
Description : 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 ... by the change in price (d) The percentage change in price by the percentage change in demand
Last Answer : (b) The percentage change in quantity demand by the percentage change in price
Description : Point elasticity of demand can be useful in which of the following cases (a) A departmental store is thinking of increasing the price of gift packs (b) A service station is considering to ... to lower the monthly membership fee (d) An airlines company is considering to lower holiday packages
Last Answer : (c) A health club is considering to lower the monthly membership fee
Description : Omlet and cakes have (a) Negative cross price elasticity of demand ; (b) Positive cross elasticity of demand; (c) Positive income elasticity of demand ; (d) Negative income elasticity of demand
Last Answer : (b) Positive cross elasticity of demand;
Description : Bread and butter have……….. (a) Negative cross price elasticity of demand ; (b) Positive cross elasticity of demand (c) Positive income elasticity of demand ; (d) Negative income elasticity of demand
Last Answer : (a) Negative cross price elasticity of demand ;
Description : Price elasticity demand of product will be more elastic if it (a) Has no substitutes ; (b) Has number of substitutes ; (c) Is an item of necessity; (d) Is life saving Product
Last Answer : ; (b) Has number of substitutes ;
Description : Price elasticity of demand of a product will be more inelastic if (a) It forms a major part of consumer house hold budget; (b) It forms a very small part of consumers household budget; (c) It is inferior ; (d) It is for mass consumption
Last Answer : (b) It forms a very small part of consumers household budget;
Description : Which of the following is not a method of measurement of price elasticity of demand in economics (a) Total Outlay ; (b) Total savings ; (c) Point method ; (d) Arc method
Last Answer : ; (b) Total savings
Description : Which of the following is not a type of elasticity in economics………………… (a) Income elasticity ; (b) Price elasticity ; (c) Utility elasticity ; (d) Cross elasticity
Last Answer : (c) Utility elasticity ;
Description : 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
Last Answer : (a) Price elasticity
Description : In a manufacturing plant, following data are gathered for a given month: Production - 1200 pieces; specific energy consumption - 1000 kWh/piece; variable energy consumption - 950 kWh/piece. The fixed energy consumption of the plant ... ----- a) 6,000 kWh b)10,000 kWh c) 12,000 kWh d) 60,000 kWh
Last Answer : d) 60,000 kWh
Description : A dealer sold a radio at a loss of 2.5%. Had he sold it for Rs. 120 more, he would have gained 7.5%. In order to gain 12.5% after a 25% discount, the marked price should be: a) 1750 b) 1800 c) 1857.75 d) 1925 e) None of these
Last Answer : 120 = 10% of the CP (2.5% loss to 7.5% profit) Or CP = Rs. 1200 To gain 12.5%, SP = 1200 × 1.125 = Rs. 1350 Rs. 1350 = 25% discounted of Marked Price Or marked Price = 1350/0.75 = Rs. 1800 Answer: b)
Description : 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
Last Answer : (c) 1.65 ;
Description : A shopkeeper declares that he sells rice at the cost price. However he uses a weight of 425 grams. Instead of 500 grams, what is his percentage of profit? a) a) 16 5/6 b) 15 c) c) 20 7/23 d) 25 e) None of these
Last Answer : % profit = Loss/Actual Weight x 100 = 500 – 425/500 × 100 = 75/500 x 100 = 15% Answer: b)
Description : Which of the following is an example of an intermediate goods. (a) A Tata Indica sold by a dealer of second hand car ; (b) Steel and cement used to construct a flyover ; (c) Farming crop purchased by FCI (d) All the three
Last Answer : (b) Steel and cement used to construct a flyover ;
Description : The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?
Last Answer : (a) Rs 1.20
Description : The cross elasticity of substitute goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) > 0
Last Answer : (d) > 0
Description : The cross elasticity of complementary goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) = 0
Last Answer : (c) < 0 ;
Description : The income elasticity of demand of normal goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) > 0
Last Answer : ; (d) > 0
Description : The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0
Description : If the disposal income of a household decreases by 10% and the demand for X commodity remains same. The income elasticity of X is (a) 0 ; (b) 0.5 ; (c) 0.5 ; (d) 2.5
Last Answer : (a) 0 ;
Description : If the disposal income of a household increases by 10% and the demand for X commodity increased by 10% the income elasticity of X is (a) 1.5 ; (b) 0.5 ; (c) 1.5 ; (d) 1.0
Last Answer : (d) 1.0
Description : If the disposal income of a household increases by 10% and the demand for X commodity increased by 25%. The income elasticity of X is (a) 1.5 ; (b) -0.5 ; (c) 2.5 ; (d) -2.5
Last Answer : ; (c) 2.5 ;