Demand and Supply

What is the definition of demand?

• The quantity of a commodity that a buyer is willing to buy at any price

• The quantity of a commodity that a buyer is willing to sell at given price per unit of time

• The quantity of a commodity that a seller is willing to sell at given price per unit of time

• The quantity of a commodity that a buyer is willing to buy at given price per unit of time

What is the definition of supply?

• The quantity of a commodity offered for sale at a given price at a given time

• The quantity of a commodity demanded by buyer

• The quantity of a commodity that a seller is willing to buy at a given price

• The total quantity of a commodity available with a seller at a particular point of time

What is the main aim of the seller when fixing the price of a commodity?

• To match the price of other sellers

• To increase sales volume

• To earn maximum profit

• To cover production costs

What are the factors affecting individual demand for a commodity?

• Price of the commodity, price of related goods, distribution of income and wealth, climatic condition

• Number of buyers, distribution of income and wealth, climatic condition

• Price of the commodity, number of buyers, tastes, preferences and fashion, population

• Price of the commodity, price of related goods, income of the buyer, tastes, preferences and fashion

  
  

What is the difference between stock and supply?

• Stock is the quantity of a commodity demanded by buyers, while supply is the quantity of a commodity offered for sale at a given price at a given time

• Stock is the total quantity of a commodity available with a seller at a particular point of time, while supply is the quantity of a commodity offered for sale at a given price at a given time

• Stock is the quantity of a commodity that a seller is willing to buy at a given price, while supply is the total quantity of a commodity available with a seller at a particular point of time

• Stock is the quantity of a commodity offered for sale at a given price at a given time, while supply is the total quantity of a commodity available with a seller at a particular point of time

What is the equilibrium price of a commodity?

• The price at which quantity demanded and supplied are equal

• The highest price in the market

• The lowest price in the market

• The average price in the market

What is the law of demand?

• If price of a commodity falls, its quantity demanded falls

• If price of a commodity rises, its quantity demanded increases

• If price of a commodity rises, its quantity demanded falls

• If price of a commodity falls, its quantity demanded remains constant

What is the law of supply?

• When the price of a commodity increases, the quantity supplied decreases

• When the price of a commodity decreases, the quantity supplied increases

• When the price of a commodity increases, the quantity supplied also increases

• None of the above

What is the meaning of equilibrium quantity?

• The lowest quantity demanded in the market

• The average quantity demanded in the market

• The highest quantity demanded in the market

• The quantity demanded and supplied at equilibrium price

What is the shape of the demand curve when there is an inverse relationship between price and its quantity demanded?

• Downward slope

• Upward slope

• Horizontal line

• Vertical line