Economics MCQs

Commerce Objective Questions

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799. If coffee and tea are substitutes, what is the cross-price elasticity of demand for coffee with respect to the price of tea?

A. It is greater than 1

B. It is negative

C. It is a positive

D. They are both inferior goods

800. If a demand curve shifts to the right, it means-

A. price of the commodity has gone down

B. demand function has improved

C. the supply function has improved

D. the real income of the consumer has gone down

801. An increase in demand combined with no changes in the supply curve will cause

A. A decrease in demand because the supply curve does not shift

B. The equilibrium price to fall

C. A movement rightward along the demand curve

D. The equilibrium price to rise

802. A change in the supply of a commodity along with same supply curve may occur due to

A. Change in the price of the commodity

B. Change in the prices of related goods

C. Change in the future expectations of the price of the good

D. Change in the cost of inputs

803. In the short run, the supply curve of a competitive firm is

A. the rising portion of the marginal cost curve lying above the minimum point of the average variable cost curve

B. the falling portion of the marginal cost curve lying before the minimum point of the average variable cost curve

C. the rising portion of the marginal cost curve after the highest point of total cost curve

D. None of the above

804. A group of firms that gets together to make price and output decisions is called

A. a non-collusive oligopoly

B. price leadership

D. a concentrated industry

805. A monopolized market is in long-run equilibrium when

A. Zero economic profit is earned by the monopolist

B. Production takes place where the price is equal to long-run marginal cost and long-run average cost

C. Production takes place where long-run marginal cost is equal to marginal revenue, and the price is not below the long-run average cost

D. All of the above

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