Chapter 3 ECONOMICS : Theory of Demand — Online MCQ Test
ECONOMICS · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 3 ECONOMICS : Theory of Demand with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers law of demand demand schedule price income and cross elasticity of demand and factors affecting elasticity..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Chapter 3 ECONOMICS : Theory of Demand — Important Questions & Answers
What does the law of demand state?
- A. When price falls, demand increases, other things remaining the same
- B. When price rises, demand increases, other things remaining the same
- C. Demand and price always move in the same direction
- D. Demand is independent of price
Answer: A. When price falls, demand increases, other things remaining the same
The law of demand says that price and quantity demanded move in opposite directions, assuming other factors remain constant.
The law of demand says that price and quantity demanded move in opposite directions, assuming other factors remain constant.
Which of the following is a demand schedule?
- A. A list showing quantities demanded at different prices
- B. A list showing total cost of production
- C. A list showing supply of goods at different prices
- D. A list showing income levels of consumers only
Answer: A. A list showing quantities demanded at different prices
A demand schedule presents the quantities demanded of a commodity at various prices.
A demand schedule presents the quantities demanded of a commodity at various prices.
If the price of tea rises and the demand for coffee increases, tea and coffee are most likely:
- A. Complementary goods
- B. Inferior goods
- C. Substitute goods
- D. Giffen goods
Answer: C. Substitute goods
When the price of one good rises and demand for another rises, the two goods are substitutes.
When the price of one good rises and demand for another rises, the two goods are substitutes.
Which of the following demand curves is likely to be the steepest?
- A. Demand for salt
- B. Demand for a branded pen
- C. Demand for a luxury car
- D. Demand for a cinema ticket
Answer: A. Demand for salt
Salt is a necessity with few close substitutes, so its demand is generally less elastic and the curve steeper.
Salt is a necessity with few close substitutes, so its demand is generally less elastic and the curve steeper.
Which of the following statements about cross elasticity is correct?
- A. It is always negative for substitutes
- B. It is positive for substitutes and negative for complements
- C. It is zero for all related goods
- D. It measures the effect of income on demand
Answer: B. It is positive for substitutes and negative for complements
Cross elasticity is positive in the case of substitute goods and negative in the case of complementary goods.
Cross elasticity is positive in the case of substitute goods and negative in the case of complementary goods.