Question : Which of the statement is correct
A: The horizontal summing of the individual demand curves results in the market demand curve.
B: The market demand curve is flatter than the individual demand curve.

Option 1: Only A true

Option 2: Only B true

Option 3: Both are true

Option 4: Both are false

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 : Which of the following is an assumption made while drawing the demand curve
a:The demand curve must be linear
b:The price of substitutes should not change
c: The quantity demanded should not change
d: The price of the commodity should not change

Option 1: A and B 

Option 2: B only

Option 3: A, B and C only

Option 4: A, B, C and D all

Question : Which of the subsequent assertions is untrue:
a) Higher elasticity number suggests a greater impact of a change in price on the quantity desired.
b) Demand elasticities can only fluctuate between -1 and +1.
c) Rectangular hyperbola demand curves will exist for all commodities with unitary elastic demand.
 

Option 1: A only 

Option 2: B only 

Option 3: A and C only 

Option 4: B and C only

Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope.
Reason (R): The demand elasticity on a linear demand curve ranges from zero to infinity.
 

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is False

Option 4: Assertion (A) is False but Reason (R) is True