choose the correct answer

21\ Identify which one of the following changes in supply curveoccurs when there is an increase in price of product:

A\Increase in supply

B\ Extension in supply

C\ Decrease in supply

D\ Contraction in supply

23\Ifthe price of a product increases by 10% and demand decreases by25%. It is the situation of:

A\ Relatively inelastic demand

B\ Unitary elastic demand

C\ Perfectly elastic demand

D\ Relatively elastic demand

24\ In the analysis of its elasticity, if the demand for product“A” increases when the price of product “B” decreases, then thoseproducts are:

A/ Substitute products

B\ Inferior products

C\ Complementary products

D\ Independent products

25\ Identify the average fixed cost (AFC) if the output is 20units and total fixed cost is RO 200:

A\ 80

B\ 60

C\ 20

D\10

26 State monopoly is the feature of:

A\ Mixed economy

B\ Developed economy

C\ Socialist economy

D\ Capitalist economy

27\ Rise in the price of complementary goods leadsto:

A\ Increase in demand

B\ Extension of demand

C\ Contraction of demand

D\ Decrease in demand

28\Which one of the following is average variable cost (AVC) ifthe output is 50 units and total variable cost isRO1000?

A\ 950

B\ 100

C\ 20

D\ 50

29\ Choose the RIGHT situation where demand will beinelastic:

A\Demand for necessary products

B\ Demand for the product having variety of uses

C\ None of the given options are correct

D\ Demand for luxury products

30\ Which one of the following are functions of central planningauthority?

A\ Profit motive but not social benefit

B\ Control all resources of economy

C\ Decides preference of products to produce

D\ None of the given options are correct