Question 101 : If two goods are unrelated to each other, then it is ______ cross elasticity of demand.

- None of the above
- positive
- Negative
- zero

Question 102 : Advertisement elasticity of demand is always ______.

- Negative
- positive
- zero
- None of the above

Question 103 : Different ______ are indicated by differently sloping income demand curve.

- price elasiticity
- Income elasticities
- Elasticity of substitution
- None of these

Question 104 : A vertical straight line demand curve implies ______ degree of price elasticity.

- Positive
- Negative
- None ot these
- zero

Question 105 : Commodities which requires a large portion of consumers income tend to have ______ demand.

- perfectly elastic
- Zero
- inelastic
- elastic

Question 106 : Jointly demanded goods tend to have ______ demand.

- inelastic
- perfectly elastic
- Relatively inelastic
- inelastic

Question 107 : A flatter demand curve represent relatively ______ demand.

- elastic
- Relatively elastic
- None ot the above
- inelastic

Question 108 : If elasticity of demand = 1, the marginal revenue is ______.

- zero
- Infinity
- Positive
- Negative

Question 109 : If cross elasticity between two goods is positive, goods are necessarily complements.

- true
- false

Question 110 : In case of inferior goods income elasticity of demand is positive.

- true
- false

Question 111 : The cross elasticity of demand may be positive, negative or zero.

- true
- false

Question 112 : A vertical demand curve implies zero price elasticity.

- true
- false

Question 113 : Promotion elasticity is always positive.

- true
- false

Question 114 : The concept of elasticity of demand has no useful application.

- true
- false

Question 115 : A perfectly elastic demand is represented by rectangular hyperbola curve.

- true
- false

Question 116 : A horizontal demand curve implies perfectly inelastic demand.

- true
- false

Question 117 : In zero income elasticity, change in income has not effect on demand.

- true
- false

Question 118 : If elasticity of demand is infinite, marginal revenue will be increase.

- true
- false

Question 119 : When e = 1, total revenue reaches its maximum.

- true
- false

Question 120 : Demand for electricity is elastic.

- true
- false

Question 121 : Habits makes demand inelastic

- true
- false

Question 122 : The cross price elasticity of demand is defined as :

- The ratio of percentage change in the demand to the percentage change in the price.
- The ratio of percentage change in the demand for a given product to the percentage change in the price of a related other product.
- The ratio of percentage change in the demand for product X to the percentage change in the demand for product Y.
- The ratio of two different elasticities.

Question 123 : A positive cross-price elasticity coefficient implies that :

- Two products are substitutes
- Two products are jointly demanded
- Two products are complementary
- Two products have no relations

Question 124 : When the price of a product X is 60 per unit, the quantity demand is 2000 units. When the price of X increased to 100 per unit, the market demand contracted to 1000 units. Then the price elasticity of demand coefficient is :

- 1.75
- 0.75
- 0.8
- 0.75

Question 125 : Measurement of demand elasticity enables the manager to :

- Know the magnitude of demand
- Characterised the nature of demand for the product
- Consider both (a) and (b)
- Consider (b) and (c)

Question 126 : Which of the following can be expected to have a flatter demand curve?

- Petrol
- Salt
- Plasma TV
- All of the above

Question 127 : Which of the following is a possible coefficient of inelastic demand ?

- 3.3
- 0.6
- 1.1
- 1

Question 128 : If the price of a product increases from 5 to 10 and corresponding change in demand is from 30 units to 12 units; it is the case of :

- Unitary elastic demand
- Elastic demand
- Inelastic demand
- Perfectly elastic demand

Question 129 : Which could be a positive cross elasticity demand between Butter and Jam?

- 1
- 0.9
- 0.9
- 2

Question 130 : When demand is perfectly elastic, the demand curve is :

- Steep
- Non-linear
- Linear
- Horizontal straight line

Question 131 : A product's market demand tends to be inelastic when :

- There are many suppliers
- There are several substitutes
- Less substitutes
- All of the above

Question 132 : On a linear horizontal demand curve :

- Elasticity is zero
- Elasticity is infinity
- Elasticity is low towards origin
- All of the above

Question 133 : Unitary elastic demand is represented by :

- Horizontal demand curve
- Downward sloping demand curve
- Vertical demand curve
- Hyperbola slope demand curve

Question 134 : The demand for a product is referred to as price-inelastic, if :

- The elasticity coefficient is less than unity
- The buyers do not respond much to the price variation in the market
- The fall in price is accompanied by the decrease of demand
- Both (a) and (b)

Question 135 : The basic formula for the advertising elasticity of demand coefficient is :

- Ratio of rise in demand to rise in advertising expenses
- Percentage change in quantity demanded/percentage change in advertising expenditure
- Absolute change in demand/absolute change in advertising expenditure
- (% ? D) (% ? A)

Question 136 : In the case of a linear demand curve :

- Elasticity is same throughout
- Elasticity varies at different points
- Demand is highly elastic at vertical intercept
- Demand is constant

Question 137 : If an increase in the price of product X does not change its total sales revenue, the manager should infer that the demand for X is :

- Undeterminable
- Unitary elastic
- Relatively inelastic
- Perfectly inelastic

Question 138 : Usually demand for air travel in business class is assumed to be :

- Highly price elastic
- Price inelastic
- Unitary elastic
- Undeterminable

Question 139 : Market demand for necessaries are usually :

- Highly price-elastic
- Price-inelastic
- Perfectly elastic
- Perfectly inelastic

Question 140 : Which of the following product has nearly perfectly inelastic demand?

- Salt
- Electricity
- Petrol
- Higher Education in Management field

Question 141 : If elasticity of demand (e) < 1, then marginal revenue is always ______.

- Positive
- Negative
- Zero
- None of these

Question 142 : If elasticity of demand = 1 than marginal revenue is ______.

- positive
- negative
- zero
- none of these

Question 143 : If cross elasticity of demand is positive, goods are ______.

- Complementary
- Substitutes
- not related
- None of these

Question 144 : If a small reduction in price leads to a fall in total outlay, elasticity of demand is :

- less than one
- greater than one
- equal to one
- none of the above

Question 145 : Which is the cause of the rightward shift of the demand curve for cars?

- An increase in income
- An increase in population size
- Lower prices of petrol
- All of the above

Question 146 : A percentage change in quantity demanded divided by a percentage change in price is called

- income elasticity of demand
- price elasticity of demand
- price elasticity of supply
- elasticity of substitution

Question 147 : On the lower segments of a downward sloping straight line demand curve price elasticity of demand is

- > 1
- < 1
- 1
- none of the above

Question 148 : Moving averages can be used to measure a _______ .

- Trade cycle
- Raulan
- Trend
- All of the above

Question 149 : Under _____ method sales man are asked to estimates expected sales.

- Statistical
- Survey
- Collective Opinion
- None of these

Question 150 : _____ forecasting uses historical figures to predict future results.

- Time Series
- None of these