Economics - Study Mode

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[#371] When a monopolist is able to sell each separate unit of the output at a different price according to the pocket of the customer, he is applying

(A) First-degree price discrimination

(B) Second-degree price discrimination

(C) Third-degree price discrimination

(D) None of the above

Correct Answer

(B) Second-degree price discrimination

[#372] Which of the following describes what happens to a consumer's budget line if the consumer's budget increases? The budget line

(A) Become steeper

(B) Shifts farther away from the origin of the graph

(C) Does not change

(D) Becomes horizontal

Correct Answer

(B) Shifts farther away from the origin of the graph

[#373] Match the following. List-I List-II a. Cross demand is the change in the quantity demanded of a given commodity in response to the 1. Relationship between the price of a commodity and the quantity demanded b. The elasticity of demand for product will be higher 2. Change in the price of another commodity c. The law of demand indicates 3. When price falls demand rises d. The law of demand states 4. The more available are substitutes for that product

(A) a-2, b-4, c-1, d-3

(B) a-1, b-2, c-3, d-4

(C) a-4, b-1, c-3, d-2

(D) a-3, b-2, c-1, d-4

Correct Answer

(A) a-2, b-4, c-1, d-3

[#374] When the cross elasticity of price of demand between two goods is zero, then such goods are said to be

(A) Independent goods

(B) Luxury goods

(C) Substitute goods

(D) Complementary goods

Correct Answer

(A) Independent goods

[#375] The responsiveness of demand to a change in price is measured by

(A) The Law of Demand

(B) The Law of Supply

(C) Equilibrium Price

(D) Elasticity of Demand

Correct Answer

(D) Elasticity of Demand