The change to a new indifference curve following a rise in aggregate consumption caused by a price cut is:
| A. | a consumption effect. |
| B. | a price effect. |
| C. | an income effect. |
| D. | a substitution effect. |
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Option: C Explanation : Click on Discuss to view users comments. |
Which is not the feature of oligopoly?
| A. | Conflicting attitudes of firms |
| B. | Advertising and sales promotion |
| C. | One firm |
| D. | Few sellers |
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Option: C Explanation : Click on Discuss to view users comments. |
Calculate price elasticity of demand if
Q1 = 4000 P1 = Rs. 20
Q2 = 5000 P2 = Rs. 19
| A. | Rs. 5 |
| B. | Rs. 9 |
| C. | Rs. 6 |
| D. | Rs. 3 |
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Option: A Explanation : Click on Discuss to view users comments. |
Given:
NNP at Factor Cost Rs. 15,560
Transfer Payment by Govt. Rs. 240
Net donation (private) Rs. 30
Interest on National Loan Rs. 170
Income from Domestic Production Rs. 140
The private income will be :
| A. | Rs. 15,860 |
| B. | Rs. 12,000 |
| C. | Rs. 13,000 |
| D. | Rs. 19,000 |
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Option: A Explanation : Click on Discuss to view users comments. |
Which of the following is necessary condition for price discrimination?
| A. | There must be imperfect competition in the market |
| B. | The elasticity of demand must be different in different markets |
| C. | Different markets must be separable for a seller to be able to practice discriminatory pricing |
| D. | All of the above |
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Option: D Explanation : Click on Discuss to view users comments. |
