Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. 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
Q. 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
Q. 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
Q. If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity ofdemand for Tea is
a. 0.45
b. 0.25
c. +0.44
d. -0.30
Q. 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%
Q. 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%
Q. Elasticity of supply depends upon
a. Nature of the commodity
b. Production technology
c. Future outlook of prices
d. All the three
Q. A supply curve passing through the origin will have elasticity
a. Less than 1
b. More than 1
c. Just One
d. Zero
Q. 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
Q. 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
Q. 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
Q. 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
Q. Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will haverate of substitution
a. Unity
b. Less than 1
c. More than 1
d. Zero