Law of Demand

(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.

• (A) is demand while (B) is not

• (B) is demand while (A) is not

• Both are considered as demand

• Both cannot be considered as demand

Giffen Goods are those, the demand for which.

(Giffen good is a concept commonly used in economics, refers to a good that people consume more of as the price rises).

• Decreases with the fall in income

• Decreases with the rise in income

• Increases with the rise in income

• None of the above

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

• Other things remain constant

• During a specified period of time provided

• At a particular price

• All of the above

Pizza and a burger would be an example for;

• Complementary goods

• Both

• Substitute goods

• Neither

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

• It is true for Law if Supply

• It is incorrect for the Law of Demand

• It is true for Law of Demand

• It is incorrect for the Law of Supply

An example of substitute goods could be:

• Car and fuel

• Butter and jam

• Bread and butter

• Mobile phone and charging cable

The example of goods of Snob Appeal would be;

(Snob Appeal means a quality that makes something attractive to people who are snobs).

• Buying a Ferrari

• Opening up a Bank Account

• Buying a Car Insurance

• Buying basic utilities

Desire, Capacity and Willingness gives rise to _____________ .

• Need

• Want

• Demand

• All of the above

An increase in the price of electricity bill will force you to:

• increase your demand for kerosene heaters and coal.

• increase your demand for light bulbs and aircon.

• increase your demand for stereos and videokes.

• increase your demand for TVs and use of gadgets.

The market demand curve for apple shows the;

• effect on market supply of a change in the demand for apple.

• quantity of an apple that consumers like to buy at different prices.

• marginal cost of producing and selling different quantities of an apple.

• effect of advertising expenditures on the market price of an apple.