Demand and Supply-3

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64. If demand curve for radial car tyres is D = 220000 – 19P and supply curve is S = 180000 + 6P, find the equilibrium Quantity?
(A) 19200 units
(B) 291000 units
(C) 29100 units
(D) 192000 units
Ans. (D)

65. If demand curve for renting a car is D = 90000 – 23P and supply curve is S = 9000 + 7P, find the equilibrium Price?
(A) Rs 1800
(B) Rs 900
(C) Rs 3600
(D) Rs 2700
Ans. (D)

66. If price of an article decreases from Rs 80 to Rs 60, quantity demanded increases from 600 units to 750 units. Find point elasticity of demand?
(A) -1
(B) 1
(C) -1.25
(D) 1.25
Ans. (B)

67. If price of a article decreases from Rs P1 to Rs 1000 units. If point elasicity of dmand is – 1, then find P1?
(A) 100
(B) 250
(C) 200
(B) 225
Ans. (C)

68. If price of an article decreases from Rs 800 to Rs 750, when quantity demanded increases from Q1 units to 2250 units, and If poin elasticity of demand is -2 find Q1?
(A) 2400 units
(B) 2000 units
(C) 1800 units
(D) 1500 units
Ans. (B)

69. If demand curve for house cleaning services is D = 45000 – 21P and supply curve is S = 15000 + 9P, find the equilibrium Quantity?
(A) 12000 units
(B) 6000 units
(C) 24000 units
(D) 30000 units
Ans. (C)

70. If demand curve for alphonso mangoes is D= 25000 – 70P and supply curve is S = 10000 +80P, find the equilibrium quantity?
(A) 18,000 units
(B) 2,000 units
(C) 1,800 units
(D) 200 units
Ans. (A)

71. If price of an article decreases from Rs 240 to Rs 220, when quantity demanded increases from 200 units to 210 units. Find point elasticity of demand?
(A) 0.6
(B) -1.8
(C) -0.6
(D) 1.8
Ans. (C)

72. If demand curve for roller skates is D = 23000 19P and supply curve is S = 18000 + 6P, find the equilibrium Price?
(A) Rs 100
(B) Rs 400
(C) Rs 50
(D) Rs 200
Ans. (D)

73. If price of an article decreases from Rs P1 to Rs 190, when quantity demanded increases from 5000 units to 5200units, and if point elasticity of demand is -0.8 find P1?
(A) Rs 220
(B) Rs 240
(C) Rs 200
(D) Rs 250
Ans. (D)

74. The Law of Demand is based on the conceptthat people _______.
(A) Buy more of a good as their income increases.
(B) Buy more of a good as the price of the good falls.
(C) Will spend all of their money on something.
(D) Want more of everything even if they have n money to buy anything.
Ans. (B)

75. If price of an article decreases from Rs 100 to Rs 80, when quantily demanded increases from Q1 units to 4600 units, and if point elasticity of demand is -0.75. Q1 = ? 350 Economics Rakesh Yadav Readers Publication Pvt. Ltd.
(A) 5000 units
(B) 4000 units
(C) 3000 units
D) 2000 units
Ans. (B)

76. For a goods ————negative income elasticity and positive price elasticity of demand, then the good is-
(A) An inferior goods
(B) Normal goods
(C) Superior goods
(D) Giffen goods
Ans. (D)

77. The Goods which are either for consumption or for investment are called-
(A) Intermediate goods
(B) Final goods
(C) Giffen goods
(D) Inferior goods
Ans. (B)

78. The Price discrimination is helpful when.
(A) Demand elasticity for two market is different
(B) Demand elasticity for two market is same
(C) Supply elasticity for two market is different
(D) Supply elasticity for two market is same.
Ans. (A)

79. Discuss about giffen and inferior good.
(A) Inferior goods are also giffen
(B) Giffen goods are also inferior goods
(C) Inferior good should not be giffen
(D) Giffen good should not be inferior.
Ans. (B)

80. The Price elasticity of demand is –
(A) Elasticity = %change in demand ÷ %change in price
(B) Elasticity = %change in price ÷ %change in demand
(C) Elasticity = %change in demand ÷ %change in supply
(D) Elasticity = %change in supply ÷ %change in Price.
Ans. (A)

81. Elasticity expressed by formula 1>e>o is –
(A) Perfectly elastic
(B) Relatively elastic
(C) Perfectly inelastic
D) Relatively inelastic
Ans. (D)

82. When percent change in demand for a commodity is less than percentage change inits price, then demand is saidto be–
(A) Highly elastic
(B) Inelastic
(C) Relatively elastic
(D) Perfectly inelastic.
Ans. (B)

83. When there is no change in demand, with large change in price then such type of demands are called-
(A) Elastic
(B) Inelastic
(C) Perfectly inelastic
(D) Relatively elastic
Ans. (C)

84. With other factor Constant, the demand of any product is decreased by-
(A) Increase in price of that product
(B) Increase in income of customer
(C) Decrease in price of that product
(D) Decrease in income of customer
Ans. (A)

85. There will be increase in price of tomato in domestic market, if-
(A) There is enormous production of tomato
(B) Export of fresh tomatoes to other countries
(C) Production cost of tomato is less
(D) All of the above
Ans. (B)

86. Which of the following is not the direct deciding factor of demand?
(A) Saving
(B) Income
(C) Price
(D) Taste
Ans. (A)

87. Which of the following goods has elastic demand?
(A) Electricity
(B) Medicines
(C) Rice
(D) Match box
Ans. (C)

88. Which of the following statement is true?
(A) Price of any good depends upon its cost.
(B) Any good has valuable price in anyone which has desire to buy it.
(C) Price of any good depend upon place value.
(D) Any good has its price if its supply is equal to
demand.
Ans. (D)

89. Which of the following is an Example of derived demand?
(A) Rice
(B) Cloths
(C) Beauty Products
(D) Cement
Ans. (D)
.
90. Demand of Labour is called–
(A) Derived demand
(B) Factory demand
(C) Market demand
(D) Direct demand
Ans. (A)

91. Perfectly inelastic demand is equal to–
(A) Unity
(B) Zero
(C) Infinity
(D) Greater than unity
Ans. (B)

92. Wh ich among the fol lowing are c lose substitutes?
(A) Milk and Sugar
(B) Sugar and Tea
(C) Tea and Coffee
D) Coffee and Biscuits
Ans. (C)

93. If there is decrease in price of X, then demand of Y is also decreased, then X & Y are-
(A) Substitute goods
(B) Complementary goods
(C) X is inferior to Y
(D) Y is inferior to X
Ans. (A)

94. For Successful Price discrimination between two market, demand elasticity of production should be-
(A) Same
(B) Different
(C) Constant
(D) Zero
Ans. (B)

95. Other things being equal, a decrease in quantity demanded of a commodity can be caused by–
(A) A rise in the price of the commodity
(B) A rise in the income of the consumer
(C) A fall in the price of a commodity
(D) A fall in the income of the consumer
Ans. (A)

96. Which of the following are consumer semidurable goods?
(A) Cars and Television sets
(B) Milk and Milk products
(C) Foodgrains and other food products
(D) Electrical appliance like fans and electric irons
Ans. (C)

97. A supply function expresses the relationship between–
(A) Price and demand
(B) Price and consumption
(C) Price and output
(D) Price and selling cost
Ans. (C)

98. Demand for complementary goods is known as–
(A) Joint demand
(B) Derived demand
(C) Direct demand
(D) Cross demand
Ans. (A)

99. Which one of the following pairs of goods is an Example for joint supply?
(A) Coffee and Tea
(B) Ink and Pen
(C) Tooth brush and Paste
(D) Wool and Mutton
Ans. (D)

100. For an inferior good, demand falls when–
(A) Price rises
(B) Income rise
(C) Price falls
(D) Income falls
Ans. (B)

101. A ‘want’ becomes a demand only when it isbacked by the–
(A) Ability to purchase
(B) Ncessity to buy
(C) Desire to buy
(D) Utility of the product
Ans. (A)

102. An exceptional demand curve is one that moves–
(A) Upward to the right
(B) Downward to the right
(C) Horizontally
(D) Vertically
Ans. (A)

103. A fall in demand or rise in supply of a commodity–
(A) increases the price of that commodity
(B) decreases the price of that commodity
(C) neutralises the changes in the price
(D) determines the price elasticity
Ans. (B)

104. The Law of Demand expresses–
(A) Effect of change in price of a commodity on its

(B) Effect of change in demand of a commodity on its price
(C) Effect of change in demand of a commodity over the supply of its substitute
(D) None of the above
Ans. (A)

105. The demand curve for a Giffen good is–
(A) Upward rising
(B) Downward falling
(C) Parallel to the quantity axis
(D) Parallel to the price axis
Ans. (A)

106. The supply of agr icu ltural products is generally–
(A) Elastic
(B) Inelastic
(C) Perfectly elastic
D) Perfectly inelastic
Ans. (B)
107. All of the goods which are scarce and limited
in supply are called–
(A) Luxury goods
(B) Expensive goods
(C) Capital goods
(D) Economic goods
Ans. (A)

108. Engel’s Law states the relationship between–
(A) Quantity demanded and price of a commodity
(B) Quantity demanded and price of substitutes
(C) Quantity demanded and tastes of the consumers
(D) Quantity demanded and income of the consumers
Ans. (D)

109. Seawater, fresh air etc are regarded in economics as–
(A) Giffen goods
(B) Inferior goods
(C) Free goods
(D) Normal goods
Ans. (C)

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