Supply is likely to be more price elastic ?

A. In the short run rather than the long run
B. If factors of production are relatively immobile between industries
C. If there are very few producers
D. If it is easy to expand output

A contraction in supply occurs when ?

A. Demand shifts outwards
B. The supply curve shifts inwards
C. The quantity supplied falls when the price falls
D. The supply curve shifts outwards

An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

A. +2
B. +0.5
C. -2
D. -0.5

A shift in aggregate supply is likely to ?

A. Reduce the general price level and reduce national income
B. Reduce the general price level and increase national income
C. Increase the general price level and reduce national income
D. Increase the general price level and increase national income

An increase in aggregate demand will have most effect on prices if ?

A. Aggregate supply is price inelastic
B. Aggregate supply is price elastic
C. Aggregate supply has a unitary price elasticity
D. Aggregate demand is price inelastic

If marginal utility is zero ?

A. Total utility is zero
B. An additional unit of consumption will decrease total utility
C. An additional unit of consumption will increase total utility
D. Total utility is maximized

An increase in the price of a complement for product A would ?

A. Shift demand for product a outwards
B. Shift demand for product a inwards
C. Shift supply for product a outwards
D. Shift supply for product a inwards

If a product is a vablen good ?

A. Demand is inversely related to income
B. Demand is inversely related to price
C. Demand is directly related to price
D. Demand is inversely related to the price of substitutes

Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

A. Demand is price inelastic
B. The good is inferior
C. Income elasticity is -2
D. The product is normal

If the price elasticity of demand is unit then a fall in price ?

A. Reduces revenue
B. Leaves revenue unchanged
C. Increase revenue
D. Reduces costs