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Me MCQ-2
Me MCQ-2
Week 3 Assignment
1) Which one of the following would most likely increase the demand for a good?
a. a decrease in consumer income
b. a decrease in the price of the product
c. an increase in the price of a close substitute
d. a decrease in the supply of good
2) If the market has a shortage that persist, economist will look for price
3) You have planned to spend Rs. 100 per month on browsing the internet. Your demand for
net browsing can be said to be
a. perfectly elastic
b. perfectly inelastic
c. relatively elastic
d. relatively inelastic
5) At a price of Rs.495, a novel is expected to sell 9,000 copies. If the novel is offered for sale
at a price of Rs.395, then the publisher can expect to sell
a. less than 9,000 copies.
b. 9,000 copies.
c. more than 9,000 copies.
d. It is impossible to predict the effect of a lower price on sales.
6) The falling part of a TU curve shows
a. Zero marginal utility
b. Decreasing marginal utility
c. Increasing marginal utility
d. Negative marginal utility
8) If a good is normal, then a decrease in price will cause a substitution effect that is
a. positive and an income effect that is positive.
b. positive and an income effect that is negative.
c. negative and an income effect that is positive.
d. negative and an income effect that is negative.
9) If the price elasticity of demand for a firm's output is elastic, then the firm's marginal
revenue is
a. positive, and an increase in price will cause total revenue to increase.
b. positive, and an increase in price will cause total revenue to decrease.
c. negative, and an increase in price will cause total revenue to increase.
d. negative, and an increase in price will cause total revenue to decrease.