mcq demand

which best describe the demand curve?

• a) the quantity consumers would like to buy in an ideal world

• b) the quantity consumers are willing to sell

• c) the quantity consumers are willing and able to buy at each and every income all other things unchanged

• d) the quantity consumers are willing and able to buy at each and every price all other things unchanged

a fall in price

• a) will cause an inward shift go demand

• b) will cause an outward shift of supply

• c) leads to a movement along a demand curve

• leads to a higher level of production

demand of a normal product may shift outward if:

• a) price decreases

• b) the price of a substitute rises

• c) the price of a complement rises

• d) income falls

According to law of diminishing marginal utility:

• a) utility is at a maximum with the first unit

• b) increasing units of consumption increase the marginal utility

• marginal products will fall as more units are consumed

• total utility will rise at a falling rate as more units are consumed

if marginal utility is zero :

• a) total utility is zero

• b) an additional unit of consumption will decrease total utility

• c) an additional unit of consumption will increase total utility

• d) total utility is maximized

a decrease in income should :

• a) shift demand for an inferior products inwards

• b) shift demand of an inferior product outwards

• c) shift supply for an inferior product outward outward

• d) shift supply for an inferior product inward

an increase in price of a complement for product A would :

• a) shift demand for product A outward

• b) shift demand for product A inward

• c) shift supply for product A outward

• d) shift supply for product A inward

an increase in price, all other things unchanged, leads to:

• a) shift demand outwards

• b) shift demand inwards

• c) a contraction of demand

• d) an extension of demand

if a product is a Veblen good:

• a) demand is inversely related to income

• b) demand is inversely related to price

• c) Demand is directly related to price

• d) demand is inversely related to the price of substitutes

if product is an inferior good:

• a) demand is inversely related to income

• b) demand is inversely related to price

• c) demand is directly related to price

• d) demand is directly to price of substitutes