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GK
GK Set-1
Economics
Micro Economics
103

Micro Economics MCQ (GK Set-1) with Answers

103) If an increase in the price of a good has no impact on the total revenue in that market, demand must be

price inelastic

unit price elastic

price elastic

all of these answers

Answer is:

unit price elastic

Micro Economics MCQ (GK Set-1) with Answers

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Related Micro Economics MCQ (GK Set-1) with Answers

104) Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to

increase total revenue to farmers as a whole because the demand for food is elastic

increase total revenue to farmers as a whole because the demand for food is inelastic

reduce total revenue to farmers as a whole because the demand for food is elastic

reduce total revenue to farmers as a whole because the demand for food is inelastic.

Answer is:

reduce total revenue to farmers as a whole because the demand for food is inelastic.

105) If supply is price inelastic, the value of the price elasticity of supply must be

infinite

zero

less than 1

greater than 1

Answer is:

less than 1

106) If there is excess capacity in a production facility, it is likely that the firm’s supply curve is

price inelastic

unit price elastic

price elastic

none of these answers

Answer is:

price elastic

107) Suppose that at a price of Rs.30 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to Rs.40 per month, the number of subscribers will fall to 20,000. At which of the following prices does

Rs.0 per month

Rs.30 per month

Rs.40 per month

Either Rs.30 or Rs.40 per month because the price elasticity of demand is 1.0

Answer is:

Rs.30 per month

Micro Economics MCQ (GK Set-1) with Answers

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