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.Management Sciences
Category: Supply and Demand
When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?
A. complements
B. substitutes
C. inferior
D. nromal
Firms are assumed to ________ costs and to ________ profits?
A. incur, desire
B. pay, make
C. charge earns
D. minimize, maximize
The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?
A. 3000
B. 7000
C. 5500
D. 4500
A supply curve that starts at the origin has ?
A. A price elasticity of supply greater than one
B. A price elasticity of supply equal to one
C. A price elasticity of supply less than one
D. A positive price elasticity of supply
An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?
A. reduces; reduces
B. reduces; increases
C. increases; increases
D. increases; reduces
The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ____________?
A. elastic
B. perfectly elastic
C. unitarily elastic
D. inelastic.
A firm that breaks even after all economic costs are paid is earning ?
A. Economic profit
B. Accounting profit
C. Normal profit
D. Supernormal profit
The price of computer chips used in the manufacture of personal computers has fallen. This will lead to _________ personal computer?
A. a decrease in the quantity supplied of
B. a decrease in the supply of
C. an increase in the quantity supplied of
D. an increase in the supply of
An increase in the costs of production will ?
A. Shift demand outwards
B. Shift demand inwards
C. Shift supply outwards so more is supplied at each and every price, all other things unchanged
D. Shift supply inwards
The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
A. The price elasticity of demand is -2
B. The good is inferior
C. Income elasticity is + 0.5
D. Income elasticity is + 2
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