If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0

If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0
by

1 Answer

Answer :

 (b) -0.5 ;
by

Related questions

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

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 

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

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 ;

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

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 ;

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

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 ; 

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

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;

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 : 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) ≥

Last Answer : (a) 1 ;

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

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 ;

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

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; 

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

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 ;

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

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 ;

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

Description : 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

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

Description : 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

Last Answer : ; (c) Decrease in demand ;

Under the law of demand ceteris paribus is/are (a) Price of other goods ; (b) Disposal income ; (c) Tastes and preferences ; (d) All the three

Description : Under the law of demand ceteris paribus is/are (a) Price of other goods ; (b) Disposal income ; (c) Tastes and preferences ; (d) All the three

Last Answer : (d) All the three

The income elasticity of demand of normal goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) > 0

Description : The income elasticity of demand of normal goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) > 0 

Last Answer : ; (d) > 0

The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0

Description : The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0

Last Answer : (c) < 0 ;

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

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 ; 

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

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;

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

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

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

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 ;

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%

Description : 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%

Last Answer : (a) Falls ;

When the price of complementary products falls, the demand of the other product will (a) Fall ; (b) Increases ; (c) Remain stable ; (d) Drops by 25%

Description : When the price of complementary products falls, the demand of the other product will (a) Fall ; (b) Increases ; (c) Remain stable ; (d) Drops by 25% 

Last Answer :  (b) Increases ;

Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%

Description : Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%

Last Answer : (a) 12% ;

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

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 ;

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 : 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

Last Answer : (a) 0.5 ;

………………… is the personal income minus personal income tax and miscellaneous receipts of Government administrative departments. (a) Surplus income ; (b) Disposal income ; (c) Expendable income ; (d) Residual income

Description : ………………… is the personal income minus personal income tax and miscellaneous receipts of Government administrative departments. (a) Surplus income ; (b) Disposal income ; (c) Expendable income ; (d) Residual income

Last Answer :  (b) Disposal income ;

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

Description : 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

Last Answer : (c) Quantity will go up ;

If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the (a) Equilibrium quantity will decrease ; (b) Equilibrium price will decrease ; (c) Equilibrium price will go up ; (d) Equilibrium quantity will increase

Description : If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the (a) Equilibrium quantity will decrease ; (b) Equilibrium price will decrease ; (c) Equilibrium price will go up ; (d) Equilibrium quantity will increase

Last Answer : (a) Equilibrium quantity will decrease ;

The quantity of a commodity that an individual is willing to purchase over a specified period of time is a function of except ………. (a) Price of the commodity ; (b) Price of the competitive products; (c) His disposal income ; (d) Price of factor of production

Description : The quantity of a commodity that an individual is willing to purchase over a specified period of time is a function of except ………. (a) Price of the commodity ; (b) Price of the competitive products; (c) His disposal income ; (d) Price of factor of production 

Last Answer : ; (d) Price of factor of production

The supply of goods means …………… (a) Quantity offered for sale at a given price and time ; (b) Quantity produced by the manufacturer ; (c) Quantity available with the supplier (d) Consumers disposal income

Description : The supply of goods means …………… (a) Quantity offered for sale at a given price and time ; (b) Quantity produced by the manufacturer ; (c) Quantity available with the supplier (d) Consumers disposal income

Last Answer : (a) Quantity offered for sale at a given price and time ;

Which of these is not a factor of quantity supplied (a) Price of the goods ; (b) Price of the related other goods; (c) Cost of production ; (d) Consumers disposal income

Description : Which of these is not a factor of quantity supplied (a) Price of the goods ; (b) Price of the related other goods; (c) Cost of production ; (d) Consumers disposal income

Last Answer : ; (d) Consumers disposal income

The quantity of a commodity which an individual is willing to purchase over a specific period of time is a function of (a) Price of the product ; (b) Disposal income ; (c) Taste and price of other commodities; (d) All the three

Description : The quantity of a commodity which an individual is willing to purchase over a specific period of time is a function of (a) Price of the product ; (b) Disposal income ; (c) Taste and price of other commodities; (d) All the three

Last Answer : (d) All the three

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

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 ;

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

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 ; 

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

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; 

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

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 ;

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

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 

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 lower the service charges (c) A health club is considering to lower the monthly membership fee (d) An airlines company is considering to lower holiday packages

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 

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

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 ;

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

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

Which of these would not be part of GDP? (a) Sale of Intermediate goods ; (b) Income from illegal betting ; (c) Household services rendered by a house wife in her family ; (d) All the three

Description : Which of these would not be part of GDP? (a) Sale of Intermediate goods ; (b) Income from illegal betting ; (c) Household services rendered by a house wife in her family ; (d) All the three

Last Answer : (d) All the three

Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three

Description : Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three

Last Answer : (d) All the three

The relationship between aggregate consumption expenditure and aggregate income of household sector is known as ………………………. function. (a) Consumption ; (b) Saving ; (c) Expenditure ; (d) Income

Description : The relationship between aggregate consumption expenditure and aggregate income of household sector is known as ………………………. function. (a) Consumption ; (b) Saving ; (c) Expenditure ; (d) Income

Last Answer : (a) Consumption

If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 5 ; (d) 1

Description : If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 5 ; (d) 1

Last Answer :  (c) 5 ;

An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 3 ; (d) 1

Description : An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B (a) 4 ; (b) 2 ; (c) 3 ; (d) 1

Last Answer : ; (c) 3 ;

Which of the following is not a type of elasticity in economics………………… (a) Income elasticity ; (b) Price elasticity ; (c) Utility elasticity ; (d) Cross elasticity

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 ;

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

Description : 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 

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

Description : 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

Last Answer : (b) Inelastic ;

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

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

Last Answer : (a) Elastic ;

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

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 ;

The cross elasticity of substitute goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) > 0

Description : The cross elasticity of substitute goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) > 0

Last Answer :  (d) > 0