Cross-elasticity of demand or cross-price elasticity between two perfect substitutes will be:

A. Negative

B. Positive

C. Infinite

D. Zero


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  1. The concept of product differentiation was firstly introduced by:
  2. A producer attains the least cost combination when the relation between Marginal Rate of Technical Substitution…
  3. Identify the work of T.W.Schultz:
  4. According to Chamberline, in monopolistic competition, differentiation is determined by:
  5. A demand curve which is horizontal and parallel to x-axis represents:
  7. Contraction in demand occurs when:
  8. With an increase in income, consumer is expected to buy more of:
  9. In cournot model, firms sell:
  10. Marginal cost is found with the help of changes in:
  11. Who is the founder of classical school of thought?
  12. The slutsky demand curve includes:
  13. In non-constant sum game (non-zero sum game), if there are two parties then:
  14. At the point where the straight line from the origin is tangent to the TC curve, AC is:
  15. On all points of budget (price) line:
  16. In economics, Externality means:
  17. When price increases and with it the total outlay on a commodity also increases, it is a case of:
  18. In short run:
  19. If the production increases under decreasing returns to scale, the cost will:
  20. If at the unchanged price, the demand for a commodity goes up, or the quantity demanded remains the…
  21. In the case of substitutes, the cross demand curve slopes
  22. We can measure consumers surplus with the help of
  23. The situation of single buyer and single seller is called:
  24. Some farm land can be used to produce either corn or soybeans. If the demand for corn increases then:
  25. The relationship between AC and MC curves depend upon the behavior of:
  26. Two policy variables, product and selling activities in the theory of firm was introduced by:
  27. 7.In an economy based on the price system the decision on what shall be produced is made by:
  28. Ordinal approach includes arranging:
  29. Supply and demand changes have their most rapid impact in:
  30. In case of monopoly, when total revenue is maximum: