Business Economics

61. Which is the condition of for market penetration?

1. High price elasticity of demand in the short run
2. Savings in production costs
3. Threat of potential competition
4. All of these

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62. If the commodities are substitute in nature, cross elasticity will be

1. Negative
2. Positive
3. Zero
4. Any of the above

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63. Which one of the following is not an internal factor influencing pricing policy

1. cost
2. objectives
3. marketing mix
4. demand

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64. For the commodities like salt, sugar etc., the income elasticity will be

1. Zero
2. Negative
3. Positive
4. Unitary

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65. In the above function, the letter Y stands for

1. Yield of production
2. Income of consumers
3. Utility
4. Supply

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66. When a small change in price leads to infinite change in quantity demanded, it is called

1. Perfectly elastic demand
2. Perfectly inelastic demand
3. Relative elastic demand
4. Relative inelastic demand

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67. Price Elasticity of demand=

1. Proportionate change in quantity demanded
   Proportionate change in price
2. Change in Quantity demanded / Quantity demanded
   Change in Price/price
3. (Q2‐Q1)/Q1
   (P2‐P1) /P1
4. All the above

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68. An increase in income may lead to an increase in the quantity demanded, it is

1. Positive income elasticity
2. Zero income elasticity
3. Negative income elasticity
4. Unitary income elasticity

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69. Fixing high price during the introduction is called

1. skimming
2. penetrating
3. full cost pricing
4. target pricing

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70. In a perfectly competitive market, individual firm

1. cannot influence the price of its product
2. can influence the price of its product
3. can fix the price of its product
4. can influence the market force

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