Description : 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
Last Answer : (b) The demand for the product will be relatively elastic
Description : Elasticity (e) expressed by the formula 1 > e > 0 is - (1) Perfectly elastic (2) Relatively elastic (3) Perfectly inelastic (4) Relatively inelastic
Last Answer : (4) Relatively inelastic Explanation: Elasticity (e) expressed by the formula 1 > e > 0 is relatively inelastic. Elasticity is responsiveness of one variable to a change in another, when other conditions are held constant.
Description : A horizontal demand curve is - (1) relatively elastic (2) perfectly inelastic (3) perfectly elastic (4) of unitary elasticity
Last Answer : (3) perfectly elastic Explanation: The demand curve facing a perfectly competitive firm is flat or horizontal. This is because all firms in perfect competition are by definition selling an identical (homogeneous) ... of the curve is zero, it is impossible for the price to change in the market.
Description : The tendency of a deformed solid to regain its actual proportions instantly upon unloading known as ______________ a) Perfectly elastic b) Delayed elasticity c) Inelastic effect d) Plasticity
Last Answer : a) Perfectly elastic
Description : Elasticity (e) expressed by the formula l > e > 0 is (1) Perfectly elastic (2) Relatively elastic (3) Perfectly inelastic (4) Relatively inelastic
Last Answer : Relatively inelastic
Description : A horizontal demand curve is (1) ralatively elastic (2) perfectly inelastic (3) perfectly elastic (4) of unitary elasticity
Last Answer : perfectly elastic
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 : A perfectly elastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis; (c) U shaped ; (d) Downward sloping
Last Answer : the aggregate demand curve
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 ;
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 ;
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
Description : 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
Description : The demand curve of a Monopoly firm is – (a) Same that of a firm in a perfect competition ; (b) Same as that of the total market demand; (c) Non-exist ; (d) Perfectly elastic
Last Answer : (b) Same as that of the total market demand;
Description : Goods which are perfect substitute of each other will have elasticity of substitution…... (a) Unity ; (b) Less than 1 ; (c) More than 1 ; (d) Infinite
Last Answer : ; (d) Infinite
Description : Economic rent does not arise when the supply of a factor unit is - (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic
Last Answer : (2) Perfectly elastic Explanation: Economic rent in the sense of surplus over transfer earnings arise when the supply of the factor units is less than perfectly elastic or not perfectly elastic. When ... , at a given price or remuneration, the entrepreneur can engage any number of factor units.
Description : Any factor of production can earn economic-rent, when its supply will be - (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above
Last Answer : (2) Perfectly inelastic Explanation: Economic rent is the revenue that can be earned from the land or other natural resource for which there is a fixed supply - as economists like to say, the supply ... inelastic, the amount of its supply does not depend on any income that the resource can produce.
Description : Any factor of production can earn economic-rent, when its supply will be (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above
Last Answer : Perfectly inelastic
Description : Economic rent does not arise when the supply of a factor unit is (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic
Last Answer : Perfectly elastic
Description : Luxury goods have --- -- degree of elasticity (a) High ; (b) Low ; (c) Moderate ; (d) Completely inelastic
Last Answer : (a) High ;
Description : )When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic
Last Answer : (2) Inelastic Explanation: When the percentage change in quantity demanded is less than the percentage change in price, then the demand for the commodity is said to be inelastic. Price elasticity of demand refers to the degree of responsiveness of quantity demanded to change in price.
Description : When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic
Last Answer : Inelastic
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 cross elasticity between two products is positive then we can say that (a) The products are perfectly substitute of each other; (b) The products are complementary to each other; (c) Both the products are unrelated ; (d) Both are luxury items
Last Answer : (a) The products are perfectly substitute of each other;
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 : 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 : Which of these will have highly inelastic supply curve (a) Perishable goods ; (b) Consumer durables goods; (c) Items of elite class consumption ; (d) All the three
Last Answer : (a) Perishable goods ;
Description : A perfect inelastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis ; (c) U shaped; (d) Downward sloping
Last Answer : (a) Parallel to Y axis or a vertical line ;
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 : If elasticity of demand is perfectly inelastic, then burden of tax will be on (a) Buyer (b) Seller (c) on both (a) and (b) (d) More on seller
Last Answer : (a) Buyer
Description : If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is - (1) perfectly inelastic (2) elastic (3) perfectly elastic (4) inelastic
Last Answer : (3) perfectly elastic Explanation: If quantity demanded changes by a very large percentage as a result of a tiny percentage change in price, then the demand is said to be perfectly elastic ... in this extreme case would be undefined but it approaches negative infinity as demand becomes more elastic.
Description : If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is (1) perfectly inelastic (2) elastic (3) perlectly elastic (4) inelastic
Last Answer : perlectly elastic
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 : Define coefficient of restitution and obtain its value for an elastic collision and a perfectly inelastic collision.
Last Answer : Define coefficient of restitution and obtain its value for an elastic collision and a perfectly inelastic collision.
Description : The demand for necessities is - (1) elastic (2) perfectly inelastic (3) inelastic (4) perfectly elastic
Last Answer : (2) perfectly inelastic Explanation: Inelastic demand means that if the price changes, the quantity demanded will not change much. The more necessary a good is, the lower the elasticity, as people ... it no matter the price. Necessities such as water are likely to have perfectly inelastic demand.
Description : The demand curve facing a perfectly competitive firm is - (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic
Last Answer : (4) perfectly elastic Explanation: A perfectly competitive industry is comprised of a. large number of relatively small firms that sell identical products. Each perfectly competitive firm is so small ... at the going market price. This translates into a horizontal or perfectly elastic demand curve.
Description : Kinetic theory of gases assumes that the collisions between the molecules are (a) perfectly elastic (b) perfectly inelastic (c) partly elastic (d) partly inelastic (e) partly elastic and partly inelastic.
Last Answer : Answer : a
Description : The demand curve facing a perfectly competitive firm is (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic
Description : The demand for necessities is (1) elastic (2) perfectly inelastic (3) inelastic (4) perfectly elastic
Last Answer : perfectly inelastic
Description : 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
Last Answer : (c) Remain same ;
Description : Long-term equilibrium of an Industry under a perfectly market conditions in achieved when (a) All the firms are earning normal profit ; (b) All the firms are in equilibrium ; (c) There is no further entry or exit of firms from the industry ; (d) All the three
Last Answer : (d) All the three
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 : 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 : If a dealer is prepared to supply 1000 sets of a 29” Color TV if the price is `12,000 per set, however if the price raises to `15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of TV set is (a) 1 ; (b) 2 ; (c) 0.75 ; (d) 1.4
Last Answer : (b) 2 ;
Description : Elasticity of supply depends upon (a) Nature of the commodity ; (b) Production technology ; (c) Future outlook of prices (d) All the three
Description : Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution (a) Unity ; (b) Less than 1 ; (c) More than 1 ; (d) Zero
Last Answer : (d) Zero
Description : Goods which are perfect substitute of each other will have rate of substitution (a) Unity ; (b) Less than 1 ; (c) More than 1 ; (d) Zero
Last Answer : (a) Unity ;
Description : 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
Description : If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be - (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity
Last Answer : (4) equal to unity Explanation: Any straight line supply curve passing through the origin has an elasticity of supply equal to 1. The different types of price elasticity of supply are listed below:
Description : If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity
Last Answer : equal to unity