Economics - Study Mode

[#186] Demand for a commodity depends on the relative price of its
Correct Answer

(A) substitute goods

[#187] Gossen's second law states that
Correct Answer

(A) consumer maximises his total pleasure, when satisfaction gained from marginal units of all commodities is the same

[#188] Profits are the reward for-
Correct Answer

(B) bearing risks

[#189] Which of the following is not an essential condition of pure competition?
Correct Answer

(D) Absence of transport cost

Explanation

Solution: Absence of transport cost is not an essential condition of pure competition. If the two conditions of pure competition are fulfilled, there can be no question of monopolistic control. In perfect competition, apart from the absence of monopoly, some other conditions are also essential, e.g., free entry and exit, the absence of transport cost, perfect knowledge.

[#190] In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then
Correct Answer

(C) Price will rise
(G) Price will rise

Explanation

Solution: In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right, then Price will rise.