Q.21)-The law of Demand is based on-
  • Manufacturer's preference
  • Seller's returns
  • Constant returns
  • Increasing returns
Q.22)-A supply function expresses the relationship between-
  • Price and output
  • Price and selling cost
  • Price and Consumption
  • Price and Consumption
Q.23)-Any factor of production can earn economicrent , when its supply will be-
  • Perfectly elastic
  • Relatively elastic
  • Perfectly inelastic
  • All of the above
Q.24)-The demand of a factor of production is-
  • Direct
  • Derived
  • Neutral
  • Discretion of the producer
Q.25)-A unit price elastic demand curve will touch-
  • Both price and quantity axis
  • Neither price axis, nor quantity axis
  • Only price axis
  • Only quantity axis
Q.26)-Other things being equal, a decrease in quantity demanded of a commodity can be caused by-
  • A rise in the income of the commodity
  • A rise in the income of the consumer
  • A fall in the price of a commodity
  • A fall in the income of the consumer
Q.27)-A demand curve will not shift-
  • When only income changes
  • When only prices of substitute products changes
  • When there is a change in advertisement expenditure
  • When only price of commodity
Q.28)-Perfectly inelastic demand is equal to-
  • One
  • Infinite
  • Zero
  • Greater than one
Q.29)-A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to-
  • Zero
  • One
  • Less than one
  • Infinity
Q.30)-The demand curve facing a perfectly competitive firm is-
  • Downward sloping
  • Perfectly inelastic
  • Aconcave curve
  • Perfect elastic