Economics - Study Mode
[#201] Demand is a function of
Correct Answer
(A) Price
Explanation
Solution: Demand is a function of Price. An increase in the price of the commodity decrease the demand for that commodity, while the decrease in price increases its demand.
[#202] The budget line is also known as the
Correct Answer
(D) Consumption possibility line
Explanation
Solution: The budget line is also known as the Consumption possibility line. The CPF, or consumption–possibility frontier, is the budget constraint where participants in international trade can consume.
[#203] Discriminating monopoly implies that the monopolist charges different prices for its commodity
Correct Answer
(D) Any of the above
Explanation
Solution: Discriminating monopoly implies that the monopolist charges different prices for its commodity From different groups of consumers, for different uses and at different places.
[#204] The major difference between perfect competition and monopolistic competition is
Correct Answer
(B) Differentiated product
Explanation
Solution: The major difference between perfect competition and monopolistic competition is differentiated product. Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.
[#205] If price and total revenue move in the same direction, then demand is
Correct Answer
(A) Inelastic
Explanation
Solution: If price and total revenue move in the same direction, then demand is Inelastic. If you decrease the good's price, a large increase occurs in quantity demanded, and total revenue increases.