Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price
A). Equal to one
B). Greater than one
C). Small than one
D). Zero
Price and demand are positively correlated in case of
A). Normal goods
B). Comforts
C). Giffen goods
D). Luxuries
Which of the following is one of the assumptions of perfect competition?
A). Few buyers and few sellers
B). Many buyers and few sellers
C). Many buyers and many sellers
D). All sellers and buyers are honest
Which is the first-order condition for the profit of a firm to be maximum?
A). AC=MR
B). MC=MR
C). MR=AR
D). AC=AR
In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be
A). 0
B). 1
C). 1.5
D). 2