11th Grade > Economics - 1
THE DEMAND CURVE MCQs
Total Questions : 30
| Page 3 of 3 pages
Answer: Option B. -> Population
:
B
Populationis not a determinant of a consumer's demand for a commodity.
:
B
Populationis not a determinant of a consumer's demand for a commodity.
Answer: Option A. -> The price elasticity of demand is negative; the income elasticity of demand is negative.
:
A
A.For an inferior good demand falls as income increases. The quantity demanded falls as price increases; this means the income elasticity and the price elasticity will both be negative.
:
A
A.For an inferior good demand falls as income increases. The quantity demanded falls as price increases; this means the income elasticity and the price elasticity will both be negative.
Answer: Option D. -> both (a) and (b)
:
D
Substitution effect takes place when price of the commodity becomes either relatively cheap or relatively dear.
:
D
Substitution effect takes place when price of the commodity becomes either relatively cheap or relatively dear.
Answer: Option B. -> positive
:
B
In case of Giffen's Paradox, the slope of demand curve is positive.
:
B
In case of Giffen's Paradox, the slope of demand curve is positive.
Answer: Option B. -> If two demand curves are linear and intersecting each other, then elasticity would be same on different demand curves at the point of intersection.
:
B
If the two straight line demand curves intersect, then, of them, the steeper line would be less elastic and the flatter line would be more elastic.
:
B
If the two straight line demand curves intersect, then, of them, the steeper line would be less elastic and the flatter line would be more elastic.
Answer: Option B. -> False
:
B
False. When Ed = 0, demand remains constant, no matter what the price is. Implying that total expenditure may increase/decrease, but not the quantity demanded.
:
B
False. When Ed = 0, demand remains constant, no matter what the price is. Implying that total expenditure may increase/decrease, but not the quantity demanded.
Answer: Option B. -> False
:
B
False. A vertical straight line demand curve parallel to Y-axis shows no change in the demand irrespective of change in price. So that, Ed = 0.
:
B
False. A vertical straight line demand curve parallel to Y-axis shows no change in the demand irrespective of change in price. So that, Ed = 0.
Answer: Option A. -> True
:
A
True.
eD=1slope×PQ=1∞×PQ=0
:
A
True.
eD=1slope×PQ=1∞×PQ=0
Answer: Option B. -> False
:
B
As the price of a good falls, its quantity demanded increases. It corresponds to movement along the demand curve. A change in demand refers to a shift of the demand curve itself. Hence, the two are separate.
:
B
As the price of a good falls, its quantity demanded increases. It corresponds to movement along the demand curve. A change in demand refers to a shift of the demand curve itself. Hence, the two are separate.
Answer: Option D. -> Both (a) and (c)
:
D
A fall in own price of the commodity leads toincrease in real income of the consumer and a consquentincrease in purchasing power of the consumer.
:
D
A fall in own price of the commodity leads toincrease in real income of the consumer and a consquentincrease in purchasing power of the consumer.
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