1.Total Cost= 100+5Q then average variable cost at Q=20 would be (1 Point) 100 5 20 200 2. All of the following are determinants of supply except: (1 Point) Price Income Level of Technology Business Expectation 3.Price elasticity coefficient of 0.2 implies that the--------- %age change in quantity for a 5% change in price will be: (1 Point) 2.5 1 5 0.2 4.Product A is currently sells at Rs.40 per unit and its demand at this price was 500 units. If price fell to 35, its demand extends to 525 units. While product B currently sells at Rs. 70 per unit and its demand at this price was 300 units, its price fell to Rs. 60 and its demand extends to 400 units. Cross price elasticity AB product is (1 Point) 0.2 0.35 1.25 5.5 5.When the price of a good is held above the equilibrium price, the result will be (1 Point) Excess demand An increase in demand Shortage of the good Surplus of the good 6.Which of the following best defines marginal utility? (1 Point) The satisfaction of a want that result from consuming a good The change in total utility by consuming additional unit Ability to buy more of the product Decrease in satisfaction by consuming next unit of product 7.Which ONE of the following will cause the demand curve for a good to move along the curve? (1 Point) fall in the price of the good decrease in the costs of producing the good increase in the price of a complementary goods increase in the price of a close substitute goods 8.Utility is maximized using indifference curve approach where (1 Point) MRS is greater than slope of budget line MRS is less than slope of budget line DMRS and MRS are equal Slope of IC and slope of Budget line are equal 9.Which statement is true of a curve with a constant slope? (1 Point) It is a straight line It is parallel to x-axes It is Parallel to y-axes It is non linear 10.Product A is currently sells at Rs.40 per unit and its demand at this price was 500 units. If price fell to 35, its demand extends to 525 units then change in total revenue will increase/decrease by (1 Point) -1000 1635 -1025 1625 11.Indifference curve is (1 Point) upward sloping downward sloping Straight line Vertical line 12.If the demand for a good is price inelastic, which ONE of the following statements is correct? (1 Point) Price rises and total revenue will become zero Price falls and total revenue will increase Price rises and total revenue will increase No change in total revenue