Q2 of 38 Page 1

As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand: (choose the correct alternative)

Reason – As we move along a downward sloping straight line demand curve from left to right, the price elasticity of demand decreases because as the price falls and the quantity demanded increases.

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The demand of a commodity when measured through the expenditure approach is inelastic. A fall in its price will result in: (choose the correct alternative)

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Define market demand.

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Average revenue and price are always equal under: (Choose the correct alternative)

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State any one feature of oligopoly.