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Worksheetstheory of demand
Total questions: 20
Worksheet time: 10mins
The law of demand states that
a decrease in the price of a good shifts the demand curve leftward.
other things remaining the same, the higher the price of a good, the smaller is the quantity demanded
other thing remaining the same, the higher the price of a good, the larger is the quantity demanded.
an increase in the price of a good shifts the demand curve leftward.
The law of demand states that the quantity of a good demanded varies
inversely with its price.
directly with population.
directly with income.
inversely with the price of substitute goods
The quantity demanded is
the amount of a good that consumers plan to purchase at a particular price.
independent of the price of the good.
independent of consumers' buying plans.
always equal to the equilibrium quantity
The law of demand states that, other things remaining the same, the higher the price of a good, the
smaller is the demand for the good.
larger is the demand for the good.
smaller is the quantity of the good demanded.
larger is the quantity of the good demanded.
Suppose people buy more of good X when the price of good Y falls. These goods are
substitutes.
inferior.
normal.
complements.
Normal goods are those for which demand decreases as
the good's own price rises
the price of a complement falls
income decreases.
the price of a substitute falls
Inferior goods are those for which demand increases as
income decreases.
income increases.
the price of a substitute falls.
the price of a substitute rises.
A change in the price of a good
shifts the good's demand curve but does not cause a movement along it
shifts the good's demand curve and also causes a movement along it.
does not shift the good's demand curve but does cause a movement along it.
neither shifts the good's demand curve nor causes a movement along it.
By definition, an inferior good is a
normal substitute good.
good for which demand decreases when its price rises.
want that is not expressed by demand.
good for which demand decreases when income increases.
A normal good is a good for which
there are very few complements.
demand decreases when income increases.
demand increases when income increases.
there are few substitutes.
Which of the following factor affects demand
Price
Change in income
Taste of the Consumer
All of these
Goods, which can alternatively be used, are called:
Complementary Goods
Substitutes
Comforts
None of these
When change in the price of goods-X affects the demand of goods-Y, this demand is called:
Price Demand
Income Demand
Cross Demand
All of these
For normal goods, Law of Demand states the relationship between price and quantity of goods is
Direct
Positive
Negative
None of the above
With rise in coffee price, the demand of tea:
Rises
Falls
Remains stable
None of these
Contraction in demand appears when:
Price rises and demand also rises
Price remains stable and demand falls
Price rises and demand falls
Price falls but demand remains stable
Which is a reason of change in demand ?
Change in price of related goods
Change in consumer’s income
Population increase
All of these
With a rise in price the demand for ‘Giffin’ goods:
increases
decreases
remains constant
becomes unstable
Among the following pairs of goods, choose the inconsistent or odd one out.
Tea and Coffee
Pepsi and Coke
Bread and Butter
Colgate and Pepsodent
Change in quantity demanded of a commodity due to change in its own price, other things remaining constant, is called:
cross price effect
price effect
income effect
substitution effect
