Which of the following statement is incorrect?
A. The demand function specifies the relationship between quantity demanded and all the variables that determine demand
B. The demand curve is that part of the demand function, that expresses the relation between price charged for a product and the quantity demanded ceteris paribus
C. Elasticity can be measured in two different ways called point elasticity and arc elasticity
D. Arc elasticity measures the average elasticity at a point on the arc of the demand curve
Answer: Option D
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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