CBSE Questions for Class 11 Commerce Economics Market Equilibrium Quiz 3 - MCQExams.com

Perfectly elastic demand curve is _____ .
  • horzontal to X axis
  • vertical to Y axis
  • flatter
  • steeper
The demand for consumption goods is direct with respect to price.
  • True
  • False
When demand increases, the demand curve shifts to the left. 
  • True
  • False
Higher demand for smart phone due to innovation is a case of _____ in demand.
  • decrease
  • rise
  • increase
  • falls
Perfectly inelastic demand curve is parallel to the X-axis.
  • True
  • False
Demand for factors of production is direct demand. 
  • True
  • False
At full employment level, the aggregate supply function will be a _____ straight line.
  • vertical
  • horizontal
  • steeper
  • flatter
Due to government expenditure demand increases.
  • True
  • False
The demand for necessities is ________.
  • inelastic
  • elastic
  • unitary elastic
  • perfectly inelastic
The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.
  • True
  • False
Perfectly inelastic demand curve is ___________.
  • Flatter
  • Steeper
  • Vertical straight line parallel to $$'OY'$$ axis
  • Horizontal straight line parallel to $$'OX'$$ axis
Other factors remaining constant, when price of a commodity rises, there is _____ of supply.
  • expansion
  • contraction
  • decrease
  • increase
Consumption expenditure is the only component of aggregate demand.
  • True
  • False
Aggregate demand consists of consumption and investment demand. 
  • True
  • False
If there is increase in quantity supplied with no change in the demand, what do we expect?
  • Price will fall
  • Equilibrium quantity will fall
  • Both price and equilibrium level will fall leading to new equilibrium level
  • Cannot say as it depends on price elasticity of demand
Movement in supply curve is caused by _______.
  • non price factors
  • price factor
  • both (A) and (B)
  • none of the above
At a given price increase in quantity supplied can be possible if _______.
  • there is apprehension of sharp fall in prices in future
  • refund or subsidy of statutory levy in cash is given by the government
  • improvement in technology led to cost saving
  • all of the above
Change in cost of production of the concerned goods causes _______.
  • the demand curve to shift
  • the supply curve to shift
  • increase in quantity demanded
  • decrease in quantity supplied
Non-price factor causes ________.
  • shift in supply curve
  • movement in supply
  • both (A) and (B)
  • none of the above
_______ is the price at which demand, for a commodity is equal to is supply.
  • Normal price
  • Equilibrium price
  • Short run price
  • Secular price
Demand curve of an Oligopoly firm is characterized by being  _________.
  • Horizontal to X axis
  • Kinked at a point
  • U shaped curve
  • A linear line
Monopolist is price maker.
  • True
  • False
From the following demand and supply position at various prices, find the equilibrium price.
PriceDemand per monthSupply price month
$$10$$$$5000$$$$2000$$
$$12$$$$4000$$$$3000$$
$$14$$$$3500$$$$3500$$
$$16$$$$2000$$$$4250$$
  • Rs. $$10$$
  • Rs. $$12$$
  • Rs. $$14$$
  • Rs. $$16$$
Shortage of supply of goods would cause ________.
  • Equilibrium price to rise
  • Equilibrium price to fall
  • Equilibrium price to remain same
  • Cost of production to go up
Assume that consumers incomes and the number of sellers in the market for a product both decrease. Based upon this information we can conclude with certainty that equilibrium _______________.
  • price will increase
  • price will decrease
  • quantity will increase
  • quantity will decrease
A perfectly inelastic supply curve will be ________.
  • parallel to X axis
  • parallel to Y axis
  • upward sloping
  • downward sloping
Suppose a firm is producing a level of output such that MR> MC. What should be firm do to maximize its profits?
  • The firm should do nothing.
  • The firm should hire less labour.
  • The firm should increase price.
  • The firm should increase output.
Change in price of the goods causes ___________.
  • change in quantity demanded
  • shift in demand curve
  • change in price
  • no effect on quantity demanded
In a _______________ a deviation from equilibrium brings into market forces in operation which resort equilibrium.
  • stable equilibrium
  • unstable equilibrium
  • temporary equilibrium
  • short run equilibrium
A perfectly elastic supply curve will be ____________.
  • U shaped
  • L shaped
  • parallel to X axis
  • parallel to Y axis
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 11 Commerce Economics Quiz Questions and Answers