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Published on: 26/08/2019
Demand
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Questions + Answers key
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1.
When a good is called 'normal goods'?
2.
What do you mean by a normal good?
3.
Due to rise in price of commodity x the demand of commodity y falls. What type of commodity are they?
4.
Define market demand.
5.
What is meant by demand?
6.
The Law of Demand, assuming other things to remain constant, establishes the relationship between:
income of the consumer and the quantity of goods demanded by him.
price of goods and the quantity demanded.
price of goods and the demand for its substitute.
quantity demanded of goods and the relative prices of its complementary goods.
7.
Which of the following pairs of goods is an example of substitutes?
Tea and sugar
Tea and coffee.
Pen and ink.
Shirt and trousers
8.
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?
The preference of the individual
His monetary income.
Price.
Price of related goods.
9.
Contraction of demand is the result of:
decrease in the number of consumers.
increase in the price of goods concerned
increase in the prices of other goods
decrease in the income of purchasers
10.
Demand for a commodity refers to:
desire for the commodity.
need for the commodity.
quantity demanded of that commodity
quantity of the commodity demanded at a certain price during any particular period of time.
11.
With a fall in income, demand for normal goods will rise.
12.
Change in quantity demanded means an increase and decrease in demand and Change in demand curve means expansion and contraction in demand.
13.
Law of demand explains quantitative relationship· between price and quantity demanded.
14.
Law of demand happens due to application of law of diminishing marginal productivity.
15.
Law of demand states that price and demand are positively related to each other.
1.
( )
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 .
2.
( )
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.
3.
( )
Complementary goods.
4.
( )
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.
5.
( )
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.
6.
(b)
price of goods and the quantity demanded.
7.
(b)
Tea and coffee.
8.
(c)
Price.
9.
(b)
increase in the price of goods concerned
10.
(d)
quantity of the commodity demanded at a certain price during any particular period of time.
11.
(b)
12.
(b)
13.
(b)
14.
(b)
15.
(b)
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