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GK
GK Set-1
Economics
Micro Economics
105

Micro Economics MCQ (GK Set-1) with Answers

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

Micro Economics MCQ (GK Set-1) with Answers

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

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

108) If demand is linear (a straight line), then price elasticity of demand is

elastic in the upper portion and inelastic in the lower portion

inelastic in the upper portion and elastic in the lower portion

. inelastic throughout

constant along the demand curve

Answer is:

elastic in the upper portion and inelastic in the lower portion

109) If consumers think that there are very few substitutes for a good, then

supply would tend to be price elastic

demand would tend to be price inelastic

demand would tend to be price elastic

supply would tend to be price inelastic

Answer is:

demand would tend to be price inelastic

Micro Economics MCQ (GK Set-1) with Answers

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