Theory of demand

Demand of commodity refers to

• Need for commodity

• Quantity demanded at certain a price and at a point of time

• Desire for the commodity

• Feeling of deprivation

When demand curve shifts upward to the right of the original curve then it is called

• Extension in demand

• Contraction in demand

• Increase in demand

• Decrease in demand

Demand for Car and petrol is

• Joint demand

• Direct demand

• Composite demand

• Competitive demand

Which of the following is not the assumption of law of demand

• Income is constant

• Preference does not change

• Price remains constant

• Number of buyers remain constant

On a straight line demand curve meeting both the axis price elasticity at horizontal axis will be

• 0

• 1

• Infinity

• 0.2

When marginal utility is negative, then total utility

• becomes zero

• becomes negative

• increases

• decreases

The slope of Indifference Curves indicates

• Price ratio between two commodities

• marginal rate of substitution

• factor substitution

• level of indifference.

Consumer’s Equilibrium is attained at a point where budget line is

• above an indifference curve

• below an indifference curve

• tangent to an indifference curve

• cuts an indifference curve

Marginal utility curve is a _________ curve

• Total utility

• Demand

• Income

• None of any

The demand curve for a commodity is generally drawn on the assumption that

• The commodity has no substitutes

• Tastes, income and all other prices remain constant

• The average house hold consists of two persons

• Purchases of the commodity are made by a free market