Which is an assumption to law of demand?
- ANo change in price of factor input
- ✓No change in size and composition of population
- CNo change in number of firms operating in a market
- DNo change in goal of a firm
Answer: B.
View full solution →Question types
Elementary Theory of Demand question types
120 questions across 6 question groups — pick any mix to generate a Economics paper with step-by-step answer keys.
120
Questions
6
Question groups
5
Question types
01
MCQ
45 Q→02Assertion (A) & Reason (B) MCQ
7 Q→03[1 Mark Question Answer]
22 Q→04[2 Mark Question Answer]
25 Q→05[3 marks Question-Answer]
6 Q→06[4 marks Question-Answer]
15 Q→Sample Questions
Elementary Theory of Demand questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Printer and ink cartridges are an example of _________ demand.
- Acompetitive
- Bcomposite
- ✓joint
- Doffice
Answer: C.
View full solution →The demand for rice by all the people in your area will be called as _________ demand.
- Aindividual
- Bsocial
- ✓market
- Dsociety
Answer: C.
View full solution →There is a _________ relationship between demand and price.
- Adirect
- ✓inverse
- Cpositive
- Dsubstitute
Answer: B.
View full solution →A substitute good is a good:
- AOf higher quality than another good
- BThat is not used in place of one another
- ✓That can be used in place of one another
- DOf low lower quality than another good
Answer: C.
View full solution →Statement (1): A rightward shift of demand curve indicates expansion of demand.
Statement (2): An upward movement along a demand curve indicates decrease in demand.
Statement (2): An upward movement along a demand curve indicates decrease in demand.
- ABoth the statements are true
- ✓Both the statements are false
- CStatement 1 is true and Statement 2 is false.
- DStatement 2 is true and Statement 1 is false.
Answer: B.
View full solution →Assertion(A): A veblen good is one for which demand increases as the price increases, ate Windows.
Reason(R): Coarse cereals and tonned milk are examples of veblen goods.
Reason(R): Coarse cereals and tonned milk are examples of veblen goods.
- ABoth Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
- BBoth Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
- ✓Assertion(A) is true but Reason(R) is false,
- DAssertion(A) is false but Reason(R) is true.
Answer: C.
View full solution →Statement (1): There is a rightward shift of demand curve in case of increase in demand.
Statement (2): There is a downward movement along the same demand curve in case of expansion in demand.
Statement (2): There is a downward movement along the same demand curve in case of expansion in demand.
- AStatement 1 is true and Statement 2 is false.
- BStatement 2 is true and Statement 1 is false.
- ✓Both the statements are true
- DBoth the statements are false
Answer: C.
View full solution →Statement (1): Normal goods violate the law of demand.
Statement (2): Law of demand is based on the assumption that the commodity is a normal good and has no status value.
Statement (2): Law of demand is based on the assumption that the commodity is a normal good and has no status value.
- AStatement 1 is true and Statement 2 is false.
- ✓Statement 2 is true and Statement 1 is false
- CBoth the statements are true
- DBoth the statements are false
Answer: B.
View full solution →Assertion(A): Demand curve slopes downwards from left to the right.
Reason(R): Demand curve slopes downwards from left to the right because price and quantity demanded are inversely related.
Reason(R): Demand curve slopes downwards from left to the right because price and quantity demanded are inversely related.
- ✓Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
- BBoth Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
- CAssertion(A) is true but Reason(R) is false.
- DAssertion(A) is false but Reason(R) is true.
Answer: A.
View full solution →What do you mean by an inferior good? Give an example.###What are inferior goods?###The quantity demanded of commodity X decreases as the household's income increases. What type of a commodity is X? Give an example.
Define complementary goods. Give two examples.
Briefly explain one exception to the law of demand.###Explain briefly any one determinant of an exceptional demand curve
Define contraction of dernand (or decrease in quantity demanded).###What is meant by contraction of demand?
Give two factors responsible for the shift of the demand curve to the right.###Mention any two factors that cause a rightward shift of the demand curve.
Mention any two examples of composite demand.
If a buyer buys less of a commodity when his income falls, how his demand curve change. Illustrate your answer with a diagram.
With suitable examples differentiate between. complementary goods and substitute goods.
Complete the following demand schedule
| Price (₹) | Qty. of mangoes demanded (kg) |
| 350 | 2 |
| 300 | |
| 250 | |
| 200 | |
| 150 | |
| 100 |
Define demand. State two factors affecting the market demand of a commodity.
Explain the diagram given below.
State the law of demand. Briefly explain any three determinants for the negative slope of the demand curve.###Why does the demand curve slope dowriwards from left to right?###Explain briefly the causes of operation of the Law of demand.Give two reasons for the operation of law of demand.###Explain how income effect is responsible for the negative slope of a demand curve.
Define demand. Explain any four factors affecting the demand for a commodity.###(i) What is demand?
(ii) With the help of a hypothetical table draw the demand curve of a commodity.
(ii) With the help of a hypothetical table draw the demand curve of a commodity.
Give the meaning of
(a) Price demand (b) Income demand and (c) Cross demand
(a) Price demand (b) Income demand and (c) Cross demand
Differentiate between change in quantity demanded and change in demand.
With the help of a graph explain the increase in demand concept.
(a) State the law of demand.
(b) Briefly explain any two reasons for its occurrence.###State and explain the law of demand with the help of a hypothetical schedule and graph.
(b) Briefly explain any two reasons for its occurrence.###State and explain the law of demand with the help of a hypothetical schedule and graph.
(i) Define the term demand.
(ii) Explain three factors that affect the demand for a commodity.
###Explain any three determinants or factors affecting demand.
(iii) Why are prestige good an exception to the law of demand?
(ii) Explain three factors that affect the demand for a commodity.
###Explain any three determinants or factors affecting demand.
(iii) Why are prestige good an exception to the law of demand?
With the help of a suitable diagram explain the meaning of rightward shift in the demand curve. Explain briefly any two of its determinants.
Differentiate between contraction in demand and decrease in demand.
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