Law of Demand

Desire, Capacity and Willingness gives rise to___________

• Need

• Want

• Demand

• All of the Above

Demand can be defined as the quantity of a product that consumers are able and willing to purchase

• at a particular price

• during a specified period of time provided

• other things remain constant

• All of the above

A. If a person is willing to purchase a product but is not able to purchase it.

B. If a person is able to purchase a certain quantity of a product but is not willing to purchase it

• Both are considered as Demand

• (A) is demand while (B) is not

• (B) is demand while (A) is not

• Both cannot be considered as Demand

Other things remaining the same, the amount demanded increases with a fall in price and diminishes with a rise in price.

• Is it true for Law of Demand

• It is incorrect for the Law of Demand

• It is true for Law of Supply

• It is incorrect for the Law of Supply

Law of demand will be applicable only if:

a. No change in price of related commodities.

b. No Change in Population.

c. Changes in Supply

d. Change in Income of the consumer

• a & b

• a, b & d

• b & d

• All of the Above

Giffen Goods are those, the demand for which

• Decreases with the fall in Income

• Increases with the rise in Income

• Decreases with the rise in Income

• None of the Above

The example of goods of Snob Appeal or Veblen Goods would be

• Buying a Ferrari

• Buying basic utilities

• Buying a Car Insurance

• Opening up a Bank Account

Pizza and a Burger would be an example for

• Complementary Goods

• Substitute Goods

• Both

• Neither

An example of Substitute goods could be:

• Car and Fuel

• Mobile Phone and Charging cable

• Butter and Jam

• Bread and Butter

Fear of Shortage is an exception to the law of Demand

• True

• False