Micro Economics MCQ (GK Set-1) with Answers

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

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

Answer is:

Rs.30 per month

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

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

Answer is:

demand would tend to be price inelastic

110) If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be

Answer is:

upward sloping

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