11th Grade > Economics - 1
THE DEMAND CURVE MCQs
Total Questions : 30
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Answer: Option C. -> Zero to infinity
:
C
The value of elasticity of demand ranges from zero to infinity.
:
C
The value of elasticity of demand ranges from zero to infinity.
Answer: Option D. -> Increased investment
:
D
Aggregate demand increases with increase in investment.
:
D
Aggregate demand increases with increase in investment.
Answer: Option D. -> All of the above
:
D
All three are reasons why an individual demand curves slopes downward to the right.
:
D
All three are reasons why an individual demand curves slopes downward to the right.
Answer: Option C. -> The price elasticity of demand is negative; the income elasticity of demand is positive.
:
C
The price elasticity of demand is negative; the income elasticity of demand is positive.
:
C
The price elasticity of demand is negative; the income elasticity of demand is positive.
Answer: Option D. -> The product has a positive income elasticity of demand
:
D
The percentage change in demand is +20%; the percentage change in income is +10%. This means the product is normal because demand rises with more income and has an income elasticity of +2.
:
D
The percentage change in demand is +20%; the percentage change in income is +10%. This means the product is normal because demand rises with more income and has an income elasticity of +2.
Answer: Option B. -> Juice and cold drink
:
B
Juice and cold drink are substituted goods, as one could be substituted for the other.
:
B
Juice and cold drink are substituted goods, as one could be substituted for the other.
Answer: Option A. -> The price elasticity of demand is -2
:
A
A.The percentage change in demand is +20%; the percentage change in price is -10% so the price elasticity of demand is -2.
:
A
A.The percentage change in demand is +20%; the percentage change in price is -10% so the price elasticity of demand is -2.
Answer: Option B. -> Necessity goods
:
B
Demand for necessary goods is inelastic.
:
B
Demand for necessary goods is inelastic.
Answer: Option B. -> When the percentage increase in the price of a good is greater than the percentage decrease in its quantity demanded, the elasticity of demand for it is less than 1.
:
B
eD=%changeinq%changeinp
You can see that option B is incorrect.
:
B
eD=%changeinq%changeinp
You can see that option B is incorrect.
Answer: Option A. -> True
:
A
The given statement is true. Demand is the relationship betweenprice and quantity demanded.
:
A
The given statement is true. Demand is the relationship betweenprice and quantity demanded.