Business Economics

21. ______________ is the process of finding current values of demand for various values of prices and other determining variables.

  1. Demand Estimation
  2. Demand analysis
  3. Demand function
  4. Demand forecasting
Correct answer: (A)
Demand Estimation

22. In the case of ______________ a small change in price leads to very big change in quantity demanded

  1. Perfectly elastic demand
  2. Perfectly inelastic demand
  3. Relative elastic demand
  4. Unit elastic demand
Correct answer: (C)
Relative elastic demand

23. In ______________ approach, on the basis of the growth of an established product, the demand for the new product is estimated

  1. Growth curve approach
  2. Evolutionary approach.
  3. Opinion polling approach
  4. vicarious approach
Correct answer: (A)
Growth curve approach

24. Which one of the following is not a reason for adopting penetration price strategy

  1. Product has high price elasticity in the initial stage.
  2. The product is accepted by large number of customers.
  3. Economies of large scale production available to firm
  4. When the buyers are not able to compare the value and utility
Correct answer: (D)
When the buyers are not able to compare the value and utility

25. Car and petrol are

  1. Complimentary goods
  2. Substitute goods
  3. Supplementary goods
  4. Reserve goods
Correct answer: (A)
Complimentary goods

26. Criteria for good demand forecasting includes;

  1. Plausibility
  2. Simplicity
  3. Economy
  4. All the above.
Correct answer: (D)
All the above.

27. Cost plus pricing is also called

  1. margin pricing
  2. full cost pricing
  3. mark up pricing
  4. all the above
Correct answer: (D)
all the above

28. Generally used strategy for pricing new products is/are

  1. Skimming price strategy
  2. Penetration price strategy
  3. Both a & b
  4. None of these
Correct answer: (C)
Both a & b

29. The architect of the theory of monopolistic competition

  1. Rosenstein Roden
  2. JR Hicks
  3. Karl Marx
  4. Chamberlin
Correct answer: (D)
Chamberlin

30. The function of combining the other factors of production is done by

  1. land
  2. labour
  3. Capital
  4. Entrepreneurship
Correct answer: (D)
Entrepreneurship
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