Question 1

When both the price of a substitute and the price of complement of X rises, the demand for X:

Accepted Answer

A) Rises 
B) Falls 
C) Remains unchanged 
D) All of the above is possible 
A) Rises 
B) Falls 
C) Remains unchanged 
D) All of the above is possible D

Question 2

The demand curve for Giffen's goods:

Accepted Answer

A) Vertical 
B) Horizontal 
C) Negative slope 
D) Positive slope 
A) Vertical 
B) Horizontal 
C) Negative slope 
D) Positive slope D

Question 3

A market:

Accepted Answer

A) Necessarily refers to a meeting place between buyer and sellers 
B) Does not necessarily refers to a meeting place between buyer and sellers 
C) Extends over the entire country 
D) Extends over a city 
A) Necessarily refers to a meeting place between buyer and sellers 
B) Does not necessarily refers to a meeting place between buyer and sellers 
C) Extends over the entire country 
D) Extends over a city B

Question 4

If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be:

Accepted Answer

A) Positive 
B) Negative 
C) Zero 
D) One 
A) Positive 
B) Negative 
C) Zero 
D) One

Question 5

A fall in the price of the commodity holding everything else constant results in:

Accepted Answer

A) Increase in demand 
B) Decrease in demand 
C) Increase in quantity demanded 
D) Decrease in quantity demanded 
A) Increase in demand 
B) Decrease in demand 
C) Increase in quantity demanded 
D) Decrease in quantity demanded

Question 6

Income elasticity of demand for inferior goods is:

Accepted Answer

A) Negative 
B) Positive 
C) Zero 
D) Unity 
A) Negative 
B) Positive 
C) Zero 
D) Unity

Question 7

The change in demand is due to the change in :

Accepted Answer

A) Income 
B) Own price 
C) Prices of related products 
D) Expectations 
A) Income 
B) Own price 
C) Prices of related products 
D) Expectations

Question 8

A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased:

Accepted Answer

A) Rises 
B) Falls 
C) Remains unchanged 
D) None of the above 
A) Rises 
B) Falls 
C) Remains unchanged 
D) None of the above

Question 9

If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

Accepted Answer

A) Greater than one 
B) Equal to one 
C) Smaller than one 
D) Zero 
A) Greater than one 
B) Equal to one 
C) Smaller than one 
D) Zero

Question 10

A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity:

Accepted Answer

A) Increases 
B) Decreases 
C) Remains unchanged 
D) None of the above 
A) Increases 
B) Decreases 
C) Remains unchanged 
D) None of the above

Question 11

An increase in the price of the commodity when demand is inelastic causes the total expenditure of consumers of the commodity to:

Accepted Answer

A) Increase 
B) Decrease 
C) Remains unchanged 
D) Any of the above 
A) Increase 
B) Decrease 
C) Remains unchanged 
D) Any of the above

When both the price of a substitute and the price of complement of X rises, the demand for X:

The demand curve for Giffen's goods:

A market:

If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be:

A fall in the price of the commodity holding everything else constant results in:

Income elasticity of demand for inferior goods is:

The change in demand is due to the change in :

A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased:

If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity:

An increase in the price of the commodity when demand is inelastic causes the total expenditure of consumers of the commodity to:

Consumer Theory and Utility

Indifference Curve Analysis and Consumer Theory

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

Keynesian Economics and Related Concepts

National Income and Keynesian Economics

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Elasticity of Supply and Demand

Filters

Exam 17: Economics Questions on Demand and Supply

When both the price of a substitute and the price of complement of X rises, the demand for X:

The demand curve for Giffen's goods:

A market:

If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be:

A fall in the price of the commodity holding everything else constant results in:

Income elasticity of demand for inferior goods is:

The change in demand is due to the change in :

A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased:

If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

A fall in the price of the commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity:

An increase in the price of the commodity when demand is inelastic causes the total expenditure of consumers of the commodity to:

Consumer Theory and Utility

Indifference Curve Analysis and Consumer Theory

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

Keynesian Economics and Related Concepts

National Income and Keynesian Economics

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Elasticity of Supply and Demand

Filters