|
Server : Apache/2.4.41 (Ubuntu) System : Linux vmi1525618.contaboserver.net 5.4.0-105-generic #119-Ubuntu SMP Mon Mar 7 18:49:24 UTC 2022 x86_64 User : www-data ( 33) PHP Version : 8.2.12 Disable Function : NONE Directory : /var/www/parasoffline.edukrypt.in/uploads/quiz/ |
Upload File : |
<!DOCTYPE html>
<!-- Generated by PHPWord -->
<html>
<head>
<meta charset="UTF-8" />
<title>PHPWord</title>
<meta name="author" content="dell" />
<style>
* {font-family: Arial; font-size: 11pt;}
a.NoteRef {text-decoration: none;}
hr {height: 1px; padding: 0; margin: 1em 0; border: 0; border-top: 1px solid #CCC;}
table {border: 1px solid black; border-spacing: 0px; width : 100%;}
td {border: 1px solid black;}
.Normal {margin-bottom: 10pt;}
.Placeholder Text {color: #808080;}
.Balloon Text {font-family: 'Tahoma'; font-size: 8pt;}
.Balloon Text Char {font-family: 'Tahoma'; font-size: 8pt;}
</style>
</head>
<body>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Suppose a seller of a textile cloth wants to lower the price of its cloth from 150 per metre to</p>
<p style="margin-top: 0; margin-bottom: 0;">Rs. 142.5 per metre. If its present sales are 2000 metres per month and further it is estimated</p>
<p style="margin-top: 0; margin-bottom: 0;">that its elasticity of demand for the product equals - 0.7</p>
<p style="margin-top: 0; margin-bottom: 0;">Calculate the exact magnitude of its new total revenue.</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Increase </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Decrease </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Constant </span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Suppose that price elasticity of demand for petorl is equal to unity and as Rs. 15 per litre an</p>
<p style="margin-top: 0; margin-bottom: 0;">individual consumers (i.e. demands) 80 litres of petrol in a week. How much price of petrol</p>
<p style="margin-top: 0; margin-bottom: 0;">should be fixed so that he demands 60 litres of petrol?</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">10</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">35</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">40</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">20</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Colgate sells its standard size toothpaste for Rs. 25. Its sales have been on an average 8000</p>
<p style="margin-top: 0; margin-bottom: 0;">units per month over the past year. Recently, its close competitor Binaca reduced the price of</p>
<p style="margin-top: 0; margin-bottom: 0;">its same standard size toothpaste form Rs. 35 to Rs. 30. As a result, Colgate sales declined by</p>
<p style="margin-top: 0; margin-bottom: 0;">1500 units per month.</p>
<p style="margin-top: 0; margin-bottom: 0;">(i) Calculate the cross elasticity between the two products.</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">5.7</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">6.1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">8.9</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Suppose th following demand function for coffee in terms of price of tea is given. Find out</p>
<p style="margin-top: 0; margin-bottom: 0;">the cross elasticity of demand when price of tea rises from Rs. 50 per 250 grams pack to Rs.</p>
<p style="margin-top: 0; margin-bottom: 0;">55 per 250 grams pack.</p>
<p style="margin-top: 0; margin-bottom: 0;">Qc = 100 + 2.5 P1</p>
<p style="margin-top: 0; margin-bottom: 0;">where Qc is the quantity demanded of coffee in terms of packs of 250 grams and Pt is the</p>
<p style="margin-top: 0; margin-bottom: 0;">price of tea per pack.</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">.55</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">.56</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">.57</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">.58</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Two goods have a cross-price elasticity of demand of + 1.2 (a) If the price of one of the goods</p>
<p style="margin-top: 0; margin-bottom: 0;">rises by 5 per cent. what will happen to the demand for the other goods. holding other factors</p>
<p style="margin-top: 0; margin-bottom: 0;">constant?</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">5% Increase</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">6% Increase</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">5% decrease</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">In an attempt to increase sales and profits, a firm is considering 5 per cent increase in price</p>
<p style="margin-top: 0; margin-bottom: 0;">and 15 per cent increase in advertising expenditure. If the price elasticity of demand is - 1.5</p>
<p style="margin-top: 0; margin-bottom: 0;">and advertising elasticity of demand is + 0.7, would there be increase or decrease in total</p>
<p style="margin-top: 0; margin-bottom: 0;">revenue?</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Increase</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">decrease</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Constant </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Which of the following will have elastic demand?</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Matchbox</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">NCERT Textbooks</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Medicines</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Air Conditioners</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">A 5% fall in the price of X leads to a 10% rise in its demand. In case of Good Y, a 2% rise in</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">price</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> leads to a 6% fall in its demand. In the given case, ______ is more elastic.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">X</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Y</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Both x and y are equally elastic </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Both x and y are inelastic</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Price Elasticity of Demand of a good is (-) 3. It shows that:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">When price falls by 1%, demand rises by 3%</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">When price rises by 1%, demand falls by 3%</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Either (a) or (b)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Neither (a) nor (b)</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">The demand function of good ‘A’ is given as: Q</span><span style="font-family: 'CIDFont+F3'; font-size: 5.5pt;">A </span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">= 40 - 5P</span><span style="font-family: 'CIDFont+F3'; font-size: 5.5pt;">A</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">. Calculate its </span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">cofficient</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> of price</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">elasticity</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> when price rises from Rs. 4 to Rs. 6.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">-1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">What is the value of elasticity of demand if the demand for the good is perfectly elastic?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Infinity</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Less than 0</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">What is the original price of a commodity when price elasticity is 0.71 and demand changes</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">form</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> 20 units to 15 units and the new price is Rs. 10?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Rs. 7.4 </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Rs. 18</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Rs. 20</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">Rs. 8</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Cross elasticity of demand in Monopoly market is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinite</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">One</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">What is income elasticity of demand, when income changes by 20% and demand changes by</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">40%</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">½</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.33</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">When demand curve is linear and it is parallel to X axis. The demand is</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Perfectly Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Highly Elastic</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Increase in Price from Rs. 4 to Rs. 6 then decrease in demand from 15 units to 10 units. What</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">is the price elasticity (Percentage Method)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.66</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">-1.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-size: 12pt;">Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-size: 12pt;">The good has many substitutes</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-size: 12pt;">The good is a luxury (as opposed to a necessity)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-size: 12pt;">The good is a small part of the consumer’s income</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-size: 12pt;">There is a great deal of time for the consumer to adjust to the change in prices.</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Elasticity between two points</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Point elasticity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Arc elasticity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Cross elasticity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F6'; font-size: 12pt;">If the demand for a good is price elastic, a fall in price will lead to :</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">A rise in total expenditure on the good</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">A fall in sales</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">A fall in total expenditure on the good</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">no</span><span style="font-family: 'CIDFont+F7'; font-size: 12pt;"> change.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Suppose the price of movies seen at a theatre rises from Rs. 120 per person to Rs. 200 per</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">person</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">. The theatre manager observes that the rise in price leads to a fall in attendance at a</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">given movie from 300 to 200 persons what is then price elasticity of demand for movies:</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">(Arc Elasticity)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">8</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.0</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.2</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F6'; font-size: 12pt;">Suppose the income elasticity of education in private school in India is 1.6. What does</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F6'; font-size: 12pt;">this indicate:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">Private school education is a luxury.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">Private school education is necessity.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">Private school education is an inferior commodity.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">We should have more private schools.</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Which of the following is False?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Price elasticity of demand is the degree of responsiveness of quantity demanded of a good to a</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">change</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> in the price of that good.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">A Perfectly Elastic Demand is one in which a little change in Price will </span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">ccause</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> an infinite change in</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Demand. Under Perfect Competition, Demand Curve of a firm is </span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">pertectly</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> elastic. In this case, demand</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">curve</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> is horizontal.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Unitary elastic demand [E = 1] is one in which a % change in price produces an equal % change</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">in</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> demand. In this case, demand curve is called Rectangular Hyperbola.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">In case of E > 1 the Shape of Demand curve goes on becoming more steeper and in case of E < 1</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">the</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> Shape of Demand curve goes on becoming more flatter.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">If demand is parallel to X axis, what will be the nature of elasticity?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Perfectly elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Highly elastic</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">When price falls from Rs. 6 to Rs. 4, the demand rises from 10 to 15 units. Calculate price</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">elasticity of demand.(Percentage Method)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Cross elasticity of perfect substitutes is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Negative</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">One</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinity</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Which of the following is False?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Income Elasticity of Demand shows the responsiveness of the quantity demanded of a good to a</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">small</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> change in the income of the consumers.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Income Elasticity of Demand is positive in case of Normal Goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Income Elasticity of Demand is negative in case of Inferior Goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Income Elasticity of Demand is infinity in case of Necessaries Goods.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">A consumer spends Rs. 80 on purchasing a commodity when its price is Rs. 1 per unit and</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">spends</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> Rs. 96 when the price is Rs. is Rs. 2 per unit. Calculate the price elasticity of demand.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.5</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">When the price of cylinder rises from Rs. 120 to Rs. 200, the demand falls from 300 to 200</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">calculate</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> price elasticity of demand.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">2</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.00</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.50</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">5.00</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">If the price is decreased from Rs. 10 to Rs. 8 of a commodity but he quantity demanded</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">remain</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> the same price elasticity is ________.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Demand for electricity power is elastic because ______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">It is available at a very high price</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">It is essential for life</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">It has many uses</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">It has many substitutes</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F6'; font-size: 12pt;">Suppose potatoes have (-).0.4 as income elasticity. We can say from the data given that:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">Potatoes are inferior goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">Potatoes are superior goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">Potatoes are necessities.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F7'; font-size: 12pt;">There is a need to increase the income of consumers so that they can purchase potatoes.</span><span style="font-family: 'CIDFont+F7'; font-size: 12pt;"> </span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Less than one</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">In case of luxury goods, the income elasticity of demand will be ______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Negative but greater than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Positive but greater than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Positive but less than one</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">In case of straight line demand curve meeting two axis, the price elasticity of demand at he</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">point where the curve meets y - axis would be ______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Greater than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Less than one</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinity</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Calculate income elasticity for the household when the income of the household increases</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">by 10% and the demand for cars rises by 20%</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">1</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">+2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">-2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">+5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">-5</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">All factors that determine replacement demand </span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">shuld</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> be </span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">cosidered</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> as a determinant of demand</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">for durable goods</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">This statement is</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">partly true</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">completlely</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> true</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">completlely</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> false</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">can’t say</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">When price falls by 5% and demand increases by 6%, then is elasticity of demand is ____.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Unitary elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero.</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Cross elasticity of complementary goods is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Positive</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Negative</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinity</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None of these.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Demand of </span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">i</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">-pod increases from 950 to 980 and income increases from 9000 to 9,800. What is</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">income</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> elasticity?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.53</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.35</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.43</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">None</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Which of the following is False?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Cross Elasticity of Demand is a change in the demand of one good in response to a change in the</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">price</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> of another good.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Cross Elasticity of Demand is Positive in case of Substitute goods, Negative in case of Complementary</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">goods</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> and Zero in case of unrelated goods.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">The Curve of Positive Cross Elasticity of Demand slopes </span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">upword</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> from left to right and the curve of</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Negative Cross Elasticity of demand slopes downwards from left to right.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None of these.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">In which of the following cases the demand for goods tends to be less elastic?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Good is necessary</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Time period is shorter</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Number of close substitutes is less</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">All of the above</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Which of the following elasticity of demand measures a movement along the demand curve</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">rather</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> than a shift in the curve?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Income elasticity of demand</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Price elasticity of demand</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Substitution elasticity of demand</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None of these.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Point elasticity is useful for which of the following situations?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">The bookstore is considering doubling the price of notebooks</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">A </span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">restauran</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> is considering lowering the price of its most expensive dishes by 50 percent.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">An auto producer is interested in determining the response of consumers to the price of cars being</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">lowered</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> by Rs. 100.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None of the above.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">If a 20% fall in price of a commodity brings about a 90% increase in its demand, then the</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">demand for the commodity will be termed as:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Highly elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Perfectly elastic.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">A decrease in price will result an increase in total revenue it :</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">The percentage change in quantity demanded in less than the percentage change in price.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">The percentage change in quantity demanded is greater than the percentage change in price</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Demand is inelastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">The consumer is operating along a linear demand curve at a point at which the price is very low and</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">the</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> quantity demanded is very high.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Which of the following statements is correct?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">With the help of statistical tools, the demand can be forecasted accurately.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">The more the number of substitutes of a commodity, more elastic is the demand.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Demand for butter is perfectly elastic.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Gold </span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">jewellery</span><span style="font-family: 'CIDFont+F4'; font-size: 10pt;"> will have negative income elasticity.</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Demand for a good is elastic if</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">A price fall produces a decrease in total expenditure on that good</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Demand for that good increases when price falls</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">A price fall produces a less than proportionate rise in the quantity demanded</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">As a result of rise in price total Expenditure of the goods decreases.</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">A 10% increase in price of Tea, results in 8% increase in the demand for coffee. The cross</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">elasticity of Demand is _____</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0.8</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.25</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.8</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Even though there is change in price, if there is no change in total expenditure, then the</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Elasticity of Demand is _______</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">>1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><1</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Amongst the following which item has highest price </span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Elasticity ?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Salt</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Petrol</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Indian Oil’s Petrol</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Rice</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Goods which are subject to Consumer Habits , e.g. Cigarette, Liquor , etc. are -</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Less Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Unit Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">More Elastic</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero Elastic</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Suppose the price of movies seen at a theatre rises from Rs. 120 per person to Rs. 200 per</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">person</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">. The theatre manager observes that the rise in price leads to a fall in attendance at a</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">given movie from 300 to 200 persons what is then price elasticity of demand for movies: (Arc</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Elasticity)</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">8</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.0</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.2</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">In case of an inferior goods, the income elasticity of demand is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Positive</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Negative</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinite</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">For what type of good does demand fall with a rise in income levels of households?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Inferior goods</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Substitutes</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Luxuries</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Necessities</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Survey of buyers intentions includes</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">End - use method</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Sample survey method</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">complete enumeration method</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">all of the above</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">The quantity demanded does not respond to price change and so the elasticity is:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">3</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">One</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Infinite</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">In case of substitute goods, cross elasticity is _____</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">3</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Negative</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Zero</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Positive</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">None of these</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Which factor generally keeps the price-elasticity of demand for a good low:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Variety of uses for that good</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Its low price</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Close substitutes for that good</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">High proportion of the consumer's income spent on it</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">In case of a straight line demand curve meeting the two axes, the price elasticity of demand</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">at the mid-point of the line would be:</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">0</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">1.5</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">2</p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">Barometric method of forecasting studies.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Lagging indicators</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">coincidental indicators</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">Leading indicators</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">All of the above</span></p>
</td>
</tr>
</table>
<p> </p>
<table class="TableGrid">
<tr>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">At a local theater, the general public pays of Rs. 50 for a movie ticket while college students</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">receive</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> Rs. 10 discount when they show a college ID card. What does this practice say about</span></p>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F3'; font-size: 10pt;">the</span><span style="font-family: 'CIDFont+F3'; font-size: 10pt;"> theater’s perception of price of demand?</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;">4</p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">College student’s price elasticity of demand is 80% of that of the general public.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">College student’s price elasticity of demand is 20% of that of the general public.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">College student’s demand for movie tickets is less price elastic than that of the general public.</span></p>
</td>
</tr>
<tr>
<td>
<p style="margin-top: 0; margin-bottom: 0;"><span style="font-family: 'CIDFont+F4'; font-size: 10pt;">College student’s demand for movie tickets is more price elastic than that of the general public.</span></p>
</td>
</tr>
</table>
<p> </p>
<p> </p>
</body>
</html>