The price of compact disc players fell over the past decade due to the combination of improving technology and rising incomes. The falling prices of a compact disc caused the
A. Demand curve for compact disc players to shift rightward faster than the supply curve of compact disc players shifted rightward
B. Supply curve of compact disc players to shift rightward faster than the demand curve for compact disc players shifted rightward
C. Demand curve for compact disc players to shift leftward and supply curve of compact disc players to shift leftward
D. Supply curve of compact disc players to shift rightward and the demand curve for compact disc players to shift leftward
Answer: Option B
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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