Question : The cross-price elasticity of demand is used to determine whether:-
a: Product is an inferior or normal good
b: A product is a necessity or a luxury
c: Two products are substitutes or complements

 

Option 1: Only A is correct

Option 2: Only A and B are correct 

Option 3: Only C correct

Option 4: Only B and C are correct

Question : The law of demand states that:

Option 1: if the price of a good increases, the demand for that good decreases

Option 2: if the price of a good increases, the demand for that good increases

Option 3: if the price of a good increases, the quantity demanded of that good decreases

Option 4: if the price of a good increases, the quantity demanded of that good increases

Question : Elasticity is quantified by
A: Geometrical Method 
B: Arithmetical Method

Option 1: Only A correct 

Option 2: Only B correct 

Option 3: Both are correct

Option 4: None of the above

Question : Assertion: When the price of a good decrease, its quantity demanded increases.
Reason: The law of demand states an inverse relationship between price and quantity demanded.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.

Question : The following are the primary causes of poverty in India:
A: Population Pressure
B: Inadequate capital formation and infrastructure
 

Option 1: A only 

Option 2: B only

Option 3: A and B both are correct

Option 4: None of the above