Demand for a commodity refers to: a) Income of the consumer and the quantity of a a) Desire for the commodity. good demanded by him. b) Need for the commodity. b) Price of a good and the quantity demanded. c) Quantity demanded of that commodity. c) Price of a good and the demand for its d) Quantity of the commodity demanded at a substitute. certain price during any particular period of time. d)Quantity demanded of a good and the relative prices of its complementary goods. Contraction of demand is the result of : a) Decrease in the number of consumers. Identify the factor, which generally keeps the b) Increase in the price of the good elasticity of demand for a good low: concerned. a) Variety of uses for that good. c) Increase in the prices of other goods. b) Its low price. d) Decrease in the income of purchasers. c) Close substitutes for that good d) High proportion of the income consumer’s All but one of the following are assumed to remain spent on it the Demand same while drawing an individual’s curve for a commodity. Which one is it? Identify the coefficient of price-elasticity of demand a) The preference of the individual. when the percentage increase in the quantity of a good b) His monetary income. demanded is smaller than the percentage fall in its c) Price. price: d) Price of related goods. a) Equal to one. b) Greater than one. Which of the following pairs of goods is an c) Smaller than one. example of substitutes? d) Zero. a) Tea and sugar. b) Tea and coffee. In the case of an inferior good, the income c) Pen and ink. elasticity of demand is: d) Shirt and trousers. a) Positive. b) Zero. In the case of a straight-line demand curve c) Negative. meeting the two axes, the price-elasticity of demand d) Infinite. at the mid-point of the line would be: a) 0 If the demand for a good is inelastic, an increase in b) 1 its price will cause the total expenditure of the c) 1.5 consumers of the goods to : d) 2 a) Remain the same. b) Increase. The Law of Demand, assuming other things to c) Decrease. remain constant, establishes the relationship between: d) Any of these.
Demand for a commodity refers to: a) Desire for the commodity. b) Need for the commodity. c) Quantity demanded of that commodity. d) Quantity of the commodity demanded at a certain price during any particular period of time. Contraction of demand is the result of : a) Decrease in the number of consumers. b) Increase in the price of the good concerned. c) Increase in the prices of other goods. d) Decrease in the income of purchasers. All but one of the following are assumed to remain the same while drawing an individual’s Demand curve for a commodity. Which one is it? a) The preference of the individual. b) His monetary income. c) Price. d) Price of related goods. Which of the following pairs of goods is an example of substitutes? a) Tea and sugar. b) Tea and coffee. c) Pen and ink. d) Shirt and trousers. In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be: a) 0 b) 1 c) 1.5 d) 2 The Law of Demand, assuming other things to remain constant, establishes the relationship between: a) Income of the consumer and the quantity of a good demanded by him. b) Price of a good and the quantity demanded. c) Price of a good and the demand for its substitute. d)Quantity demanded of a good and the relative prices of its complementary goods. Identify the factor, which generally keeps the of demand for a good low: a) Variety of uses for that good. b) Its low price. c) Close substitutes for that good d) High proportion of the consumer’s income spent on it Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price: a) Equal to one. b) Greater than one. c) Smaller than one. d) Zero. In the case of an inferior good, the income elasticity of demand is: a) Positive. b) Zero. c) Negative. d) Infinite. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the goods to : a) Remain the same. b) Increase. c) Decrease. d) Any of these. elasticity