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 5 questions. Answers to Economics MCQs are available after clicking on the answer.

1.For maximum profit, the condition is:

(a) AR = AC

(b) MR = MC

(c) MR = AR

(d) MC = AC

Answer

Answer: (b) MR = MC


 

2.Equilibrium price may be determined through:

(a) Only demand

(b) Only supply

(c) Both demand & supply

(d) None

Answer

Answer:(c) Both demand & supply





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)

Answer

Answer: (b) Excess demand exists


 

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

Answer

Answer:(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

Answer

Answer: (c) Both demand and supply can change


 

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