Q : In which of the following market structures, there is a variable demand curve?
(A) Perfect competition
(B) Monopoly
(C) Oligpoly
(D) Monopolistic competition
There is freedom of entry and exit. Sellers have perfect knowledge about the market conditions. They are price taker. Price Elasticity of Demand of a firm is Infinite which means demand curve for Perfect competition is a Perfectly Elastic.
Which one of the following factors does not shift the demand curve for a product to the right?
(A) to advertise successfully
(B) fall in the price of its complements
(C) increase in the price of its substitutes
(D) fall in the price of the product itself
A change in the price of a good does not shift the demand curve. Instead, it causes a movement along the demand curve.
On what basis does the monopolist resort to price discrimination?
(A) Elasticity of supply
(B) elasticity of demand
(C) law of demand
(D) law of supply
Price discrimination is practiced based on the seller's belief that customers in certain groups can be asked to pay more or less based on certain demographics or on how they value the product or service in question.
The supply of labour in the economy depends on
(A) Population
(B) National Income
(C) Per capita income
(D) Natural resources
The supply of labour also depends on the proportion of working population in the total labour force. This partly depends on the minimum age at which a person can join the labour force and engage in full time employment.
The elasticity of demand also measures the responsiveness of the quantity demanded of a commodity.
(A) Change in the price of the commodity.
(B) Change in the price of the substitute good
(C) Change in price of complementary good
(D) Change in price of joint products
What does the consumption function express the relationship of consumption with?
(A) Saving
(B) Income
(C) Investment
(D) Price
The consumption function is an economic formula that measures the relationship between income and total consumption of goods and services in the economy. The consumption function was introduced by John Maynard Keynes.
In which market structure the market demand curve is represented by the demand curve of the firm?
(A) Monopoly
(B) Oligarchy
(C) Dual rights
(D) Perfect competition
Since all firms in perfect competition sell identical products and face the same market price, the market demand curve is determined by horizontally summing the individual firm's demand curves. Therefore, the market demand curve coincides with the demand curve of a single firm in perfect competition.
Name the function that represents the number of products a seller is willing to sell at a given price level.
(A) demand curve
(B) Price (cost) curve
(C) supply curve
(D) none of these
Supply curve is the curve which shows the quantity of products a seller wishes to sell at a given price level. Supply curve projects different level of goods which can be suppliied by the producers at different levels.
What happens when there is a decrease in demand or an increase in the supply of a commodity?
(A) the prices of things go up
(B) the prices of things go down
(C) prices stabilize
(D) the movement of prices is determined
The demand curve of a firm under perfect competition is:
(A) horizontal to OX-axis
(B) negative slope
(C) positive slope
(D) U-shaped
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