Theory of demand & supply – Test 1

An indifference curves are always ____

Indifference curves can intersect each other.

Higher level of indifference curve shows lower level of satisfaction.

Indifference curve cannot touch to X-axis.

Indifference curve cannot touch to Y-axis.

____represents the various combinations of two goods which can be purchased with a given money income and assumed prices of goods.

Should a consumer move upward along an indifference curve, his total utility –

The consumer is in equilibrium at a point where the budget line ___

The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of ____

By consumer surplus economists mean ___

The price of Good X increased X increases by 22% and the quantity of Good X demanded falls by 25%. This indicates that demand for Good X is: ___

Suppose the price of commodity rises from Rs 120 to Rs 200. It is observed that the rise in price causes quantity demanded to fall from 300 to 200. What is the price elasticity of demand for commodity?

If the price of a commodity is reduced from Rs 300 to Rs 200 and the quantity demanded increases from 3,000 to 5,000. What is the price elasticity of demand?

The price of a commodity decreases from Rs 6 to Rs 4 and his demand for goods increases from 10 units to 15 units, Find the coefficient of price elasticity.

A consumer buys 50 units of a commodity at Rs 4 per unit. When its price falls by 25%, its demand rises to 100 units. Find out price elasticity of demand.

When the price of commodity-X is Rs 20 per unit, its quantity demanded is 50 units; and when the price goes up to Rs 40 per unit, its quantity demanded falls to 25 units. Find the price elasticity coefficient and give its interpretation.

A consumer spends Rs 80 in the commodity when its price is Rs 1 per unit and spends Rs 96 when the price is Rs 2 per unit. Calculate the price elasticity coefficient of demand for the commodity.

Consumer-X buys 100 units of a commodity at Rs 8 per unit. When its price falls by 50%, the demand rises to 200 units. Find out the price elasticity of demand for this product.

If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity by 20%, the cross-price elasticity of demand between beef and chicken is-

Calculate cross-elasticity of demand when demand for X increase from 10 units to 15 units and price of Y increase from Rs 3 to Rs 6 per unit.

If the price elasticity of demand for a good is 0.70, the demand for the good can be described as: ___-

Suppose the price of movies seen at a theatre rises from Rs 120 per person to Rs 200 per person. The theatre manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons. What is the price elasticity of demand for movies?

If the local pizzeria raises the price of a medium pizza from Rs 60 to Rs 100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand for pizzas is: ____

The price of a commodity decreases from Rs 6 to Rs 4 and his demand for goods increases from 10 units to 15 units, Find the coefficient of price elasticity.

The supply function is given as: Q=-100+10P. Find the elasticity using point method, when price is Rs 15.