Match the following.
| List-I | List-II |
| a. Cross demand is the change in the quantity demanded of a given commodity in response to the | 1. Relationship between the price of a commodity and the quantity demanded |
| b. The elasticity of demand for product will be higher | 2. Change in the price of another commodity |
| c. The law of demand indicates | 3. When price falls demand rises |
| d. The law of demand states | 4. The more available are substitutes for that product |
A. a-2, b-4, c-1, d-3
B. a-1, b-2, c-3, d-4
C. a-4, b-1, c-3, d-2
D. a-3, b-2, c-1, d-4
Answer: Option A
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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