Business Economics 21. ______________ is the process of finding current values of demand for various values of prices and other determining variables.
Demand Estimation Demand analysis Demand function Demand forecasting View answer Correct answer: (A)
22. In the case of ______________ a small change in price leads to very big change in quantity demanded
Perfectly elastic demand Perfectly inelastic demand Relative elastic demand Unit elastic demand View answer Correct answer: (C)
23. In ______________ approach, on the basis of the growth of an established product, the demand for the new product is estimated
Growth curve approach Evolutionary approach. Opinion polling approach vicarious approach View answer Correct answer: (A)
24. Which one of the following is not a reason for adopting penetration price strategy
Product has high price elasticity in the initial stage. The product is accepted by large number of customers. Economies of large scale production available to firm When the buyers are not able to compare the value and utility View answer Correct answer: (D)
25. Car and petrol are
Complimentary goods Substitute goods Supplementary goods Reserve goods View answer Correct answer: (A)
26. Criteria for good demand forecasting includes;
Plausibility Simplicity Economy All the above. View answer Correct answer: (D)
27. Cost plus pricing is also called
margin pricing full cost pricing mark up pricing all the above View answer Correct answer: (D)
28. Generally used strategy for pricing new products is/are
Skimming price strategy Penetration price strategy Both a & b None of these View answer Correct answer: (C)
29. The architect of the theory of monopolistic competition
Rosenstein Roden JR Hicks Karl Marx Chamberlin View answer Correct answer: (D)
30. The function of combining the other factors of production is done by
land labour Capital Entrepreneurship View answer Correct answer: (D)
Entrepreneurship