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Law of Demand

Total questions: 10

Worksheet time: 3hrs 30mins

Name
Class
Date
1.

Desire, Capacity and Willingness gives rise to___________

a)

Need

b)

Want

c)

Demand

d)

All of the Above

2.

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

a)

at a particular price

b)

during a specified period of time provided

c)

other things remain constant

d)

All of the above

3.

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)

Both are considered as Demand

b)

(A) is demand while (B) is not

c)

(B) is demand while (A) is not

d)

Both cannot be considered as Demand

4.

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

a)

Is it true for Law of Demand

b)

It is incorrect for the Law of Demand

c)

It is true for Law of Supply

d)

It is incorrect for the Law of Supply

5.

Law of demand will be applicable only if:

a. No change in price of related commodities.

b. No Change in Population.

c. Changes in Supply

d. Change in Income of the consumer

a)

a & b

b)

a, b & d

c)

b & d

d)

All of the Above

6.

Giffen Goods are those, the demand for which

a)

Decreases with the fall in Income

b)

Increases with the rise in Income

c)

Decreases with the rise in Income

d)

None of the Above

7.

The example of goods of Snob Appeal or Veblen Goods would be

a)

Buying a Ferrari

b)

Buying basic utilities

c)

Buying a Car Insurance

d)

Opening up a Bank Account

8.

Pizza and a Burger would be an example for

a)

Complementary Goods

b)

Substitute Goods

c)

Both

d)

Neither

9.

An example of Substitute goods could be:

a)

Car and Fuel

b)

Mobile Phone and Charging cable

c)

Butter and Jam

d)

Bread and Butter

10.

Fear of Shortage is an exception to the law of Demand

a)

True

b)

False