Demand and Supply

Law of demand is.......

• Inverse relationship between price and quantity

• Positive relationship between price and quantity

• Forward relationship between price and quantity

• Backward relationship between price and quantity

Nature of demand curve is ....

• Left to right upward

• Left to right downward

• Parallel to X-axis

• Parallel to Y-axis

Market demand is obtained by ?

• Vertical summation of individual demand

• Horizontal summation of individual demand

• Multiplying individual demand

• Dividing individual demand

Price elasticity of demand is defined as .....

• Percentage Change in quantity demanded by percentage change in price

• Percentage Change in price by percentage change in quantity demanded

• Percentage change in supply by change in price

• Change in price and change in supply

Quantity change is greater than the price change, the elasticity is ....

• Less elastic

• Unitary elastic

• More elastic

• Perfectly inelastic

If the price of a commodity is more than the equilibrium price then ....

• D = S

• D < S

• D > S

• D - S = 0