Demand for a commodity refers to:

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(a)

desire for the commodity.

(b)

need for the commodity.

(c)

quantity demanded of that commodity

(d)

quantity of the commodity demanded at a certain price during any particular period of time.

Contraction of demand is the result of:

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(a)

decrease in the number of consumers.

(b)

increase in the price of goods concerned

(c)

increase in the prices of other goods

(d)

decrease in the income of purchasers

All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?

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(a)

The preference of the individual

(b)

His monetary income.

(c)

Price.

(d)

Price of related goods.

Which of the following pairs of goods is an example of substitutes?

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(a)

Tea and sugar

(b)

Tea and coffee.

(c)

Pen and ink.

(d)

Shirt and trousers

The Law of Demand, assuming other things to remain constant, establishes the relationship between:

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(a)

income of the consumer and the quantity of goods demanded by him.

(b)

price of goods and the quantity demanded.

(c)

price of goods and the demand for its substitute.

(d)

quantity demanded of goods and the relative prices of its complementary goods.

Law of demand states that price and demand are positively related to each other.

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(a) True

(b) False

Law of demand happens due to application of law of diminishing marginal productivity.

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(a) True

(b) False

Law of demand explains quantitative relationship· between price and quantity demanded.

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(a) True

(b) False

Change in quantity demanded means an increase and decrease in demand and Change in demand curve means expansion and contraction in demand.

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(a) True

(b) False

With a fall in income, demand for normal goods will rise.

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(a) True

(b) False

What is meant by demand?

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(a)

Demand is a quantity of a commodity that a consumer wishes to purchase at a given level of price and during a specified period of time.

Define market demand.

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(a)

Market demand refers to the quantity of a commodity that all the consumers are willing and able to buy, at a particular price during a given period of time.

Due to rise in price of commodity x the demand of commodity y falls. What type of commodity are they?

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(a)

Complementary goods.

What do you mean by a normal good?

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(a)

For normal good, with a rise in income, the demand of the commodity also rises and vice-versa. Shortly, direct relationship exists between the income of a consumer and demand of normal good. For example, a new car, new clothings.

When a good is called 'normal goods'?

1

(a)

For  normal good, with a rise in income, the demand of the commodity also rises and vice-versa. Shortly, direct relationship exists between the income of a consumer and demand of normal good. For example, a new car, new clothings .