B:-Statements II and Ill are false
C:-Statements Ill and IV are false
D:-Statements II and IV are false
Correct Answer:- Option-B

Question43:-The percentage change in price is 5%, percentage change in quantity
demanded is 0%, the elasticity of demand is said to be

A:-Perfectly inelastic
B:-Perfectly elastic
C:-Unitary elastic
D:-Relatively elastic
Correct Answer:- Option-A

Question44:-Which of the following is INCORRECT with regard to methods of
demand forecasting

(i) Delphi method is way of finding a better and consensus estimate of experts

(ii) Simultaneous equation method uses exogenous and endogenous variables and
frames a structural equation

(iii) Consumer clinic method uses simulated market conditions to study behaviour
of consumers by giving money to participants for shopping

(iv) Consumer survey method uses secondary data for demand forecasting

A:-Statement | alone is incorrect
B:-Statement II alone is incorrect
C:-Statement III alone is incorrect
D:-Statement IV alone is incorrect
Correct Answer:- Option-D

Question45:-Ildentify the CORRECT statements from the following

(1) Fixed cost line is horizontal and parallel to X axis

(ii) Variable cost line starts from the origin and moves upward from left to right
(111) Total cost line starts from the origin and moves upward from left to right
(iv) Marginal cost is ascertained by dividing change in the total cost with the
change in the quantity produced

A:-Statements I, Il and IV are correct
B:-Statements |, Il and Ill are correct
C:-Statements II, Ill and IV are correct
D:-All statements are correct

Correct Answer:- Option-A

Question46:-Which of the following is a WRONG statement with regard to CVP
analysis

A:-BEP is equal to fixed cost divided by contribution per unit
B:-PV Ratio is calculated as contribution divided by sales

C:-Margin of safety is equal to BEP sales minus Actual sales