MICROECONOMICS CH : 11 THEORY OF SUPPLY — Economics STD 11 Commerce — Question

If disposable income of the people rises, their demand curve for butter may not obey the law of demand.

Scarcity exists even when certain goods are available at zero price.

Diminishing returns to a factor always lead to fall in total product.

Giving reasons, state whether the following statements are true or false-
Total- utility increases as long as marginal utility is positive (+).

If IC is convex to the origin, MRS should not be diminishing.

State giving reasons, whether the following statements are true or false:
Total Product will increase only when Marginal Product increases.

Giving reasons, state whether the following statement are True or False.
When price of factor input falls, supply curve shifts rightward.

State giving reasons, whether the following statements are true or false:
When there are diminishing returns to a factor, Total Product first increases and then starts falling?

If a straight line upward sloping supply curve shoots from the origin, elasticity of supply is always equal to one.

Giving reasons, state whether the following statements are true or false.
In perfect competition, selling costs can help in raising sale of the product.