Economics MCQ Questions and Solutions with Explanations | Commerce

When demand for the product increases in the same proportion in which income increases, income elasticity of demand will be equal to

When demand curve is rectangular Hyperbola, the elasticity of demand will be

Monopolist may charge higher price to maximize profit under which of the following conditions?

Consider the following statements
1. Decrease in demand is caused by change in factors other than own price of the commodity.
2. Contraction of demand is caused by decrease in own price of the same commodity.
3. Extension of demand is caused by increase in own price of the same commodity.
Which of the statement(s) given above is/are correct?

The fundamental aim of a monopolist is to

Consider the following statements
1. One way for the government to induce a monopolist to expand his output is by imposing a price ceiling that makes the monopolist lower his price.
2. MC = MR = AC = AR shows the equilibrium position of the competitive firm.
3. One way for the government to induce a monopolist is to make the monopolist raise his price.
4. One way for the government to induce a monopolist is to expand his output by imposing a specific tax on the monopolist output.

Liberalization means:

The highest growth target has been set in the tenth five year plan

Demand curve of monopoly:

Which of the following is not included in computing the gross national product of the country at market prices?