Question

An equiproportionate change in both price and quantity demanded is termed :

a	Perfectly elastic demand
b	Unit price elasticity of demand
c	Perfectly inelastic demand
d	Perfectly inelastic supply

Question 11 (1 point)

The Giffen Paradox is the ony exception to the law of demand.

True

False

Question 12 (1 point)

The point-elasticity method of calculating own-price elasticity of demand is based on:

a	Infinitesimally small changes of differential calculus.
b	Linear approximation
c	Non-linear approximation
d	A method of averaging.

Question 13 (1 point)

Price floor is a government regulation stipulating the maximum price that can be charged for a product.

True

False

Question 14 (1 point)

in monopolistic competition, firms are not free to enter or exit an industry in the long run.

True

False

Question 15 (1 point)

Minimum Efficient Scale (MES) is a concept applicable only to :

a	The short run
b	The long-run
c	Both the short-run and long-run
d	The so-called 'very long run'.

Answer 1

Q1 option B - unit price elasticity of demand

Ed= 1

Q11 false

Giffen paradox is not only exception to law of demand others are- veblon goods, emergency situations like war, ignorant consumption, snob effect etc

Q12 option A

that is infinitesimally small chnges of differential calculus

Q13 False

It is the price ceiling which gives maximum price seller can charge

Q14 false

Entry and exit of firms are free in long run under monopolistic competition.

Q15 Option b that is long run

Minimum effect scale lowest production point that minimizes long run average total cost