Question:

A fall in the market demand, supply remaining the same results in:

A.

Increase in equilibrium price

B.

Increase in equilibrium quantity

C.

Increase in equilibrium price and decrease in equilibrium quantity

D.

Both equilibrium price and quantity falls

Answer» d. Both equilibrium price and quantity falls

Question:

The price at which the demand and supply are equal is called:

A.

Normal price

B.

Support price

C.

Equilibrium price

D.

Fair price

Answer» c. Equilibrium price

Question:

The ordering of combinations on an indifference curve is:

A.

Weak

B.

Strong

C.

Average

D.

None

Answer» a. Weak

Question:

The marker structure in which number of sellers is small withinterdependence is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» d. Oligopoly

Question:

Under monopolistic competition, the long run equilibrium of thefirm is established at the

A.

Minimum point of LAC

B.

Point where LAC is still falling

C.

Point where LAC is rising

D.

Minimum point of LMC

Answer» b. Point where LAC is still falling

Question:

Selling cost is insignificant under:

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

All of the above

Answer» b. Monopoly

Question:

An increase in market demand, supply remaining the same results in:

A.

Decrease in equilibrium price

B.

Decrease in equilibrium quantity

C.

Decrease in equilibrium price and increase in equilibrium quantity

D.

Both equilibrium price and quantity rises

Answer» d. Both equilibrium price and quantity rises