Question

Emphasis is given more in managerial economics:
(a) On means
(b) On proofs
(c) On both of the above
(d) None of the above.
Which type of commodities do not increases demand due to decrease in price?
(a) Casual items
(b) Inductor items
(c) Giffin items
(d) Essential items.
ED=0 means that elasticity of demand:
(A) The absolute elasticity
(B) is equal to the unit
(C) The integer is elastic
(D) Less than unit
The law of decreasing returns:
(a) Applies only to industries (b) applies only to agriculture
(c) Does not apply at all to industries
(d) Applies to every economic activity after a limit.
When the proportional change in output is less than the proportional change in
then:
4.
5.​

Answer 1

Generally the amount demanded of a good increases with a decrease in price of the good and vice versa. In some cases, however, this may not be true. There are certain goods which do not follow this law. These include Veblen goods, Giffen goods, stock exchanges and expectations of future price changes.