Economics Quiz – Chapter 4 – Determination of Price

Economics Quiz, which are covered in this chapter, relate to the topic, Determination of Price. Economics Quiz Test contains 10 questions. Answers to Economics MCQs are available at the end of the last question.




1.For maximum profit, the condition is:

(a)    AR = AC

(b)    MR = MC

(c)     MR = AR

(d)    MC = AC

2.Equilibrium price may be determined through:

(a)    Only demand

(b)    Only supply

(c)     Both demand & supply

(d)    None

3. If price is forced to stay below equilibrium price:

(a)    Excess supply exists.

(b)    Excess demand exists

(c)     Either (a) or (b)

(d)    Neither (a) or (b)




4. An increase in supply with unchanged demand leads to :

(a)    Rise in price and fall in quantity

(b)    Fall in both price and quantity

(c)     Rise in both price and quantity

(d)    Fall in price and rise in quantity

5. In the long run:

(a)    Only demand can change

(b)    Only supply can change

(c)     Both demand and supply can change

(d)    None of these

 

ANSWERS

1. (b) MR = MC

2. (c) Both demand & supply

3. (b) Excess demand exists

4. (d) Fall in price and rise in quantity

5. (c) Both demand and supply can change

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