Chapter 9: The Price Puzzle What Drives the Market — Online MCQ Test
SOCIAL · Grade 9 · CBSE(NCERT)
Practice Chapter 9: The Price Puzzle What Drives the Market with a free chapter-wise online MCQ test.
This chapter covers: Demand Supply Market Price Equilibrium Competition Consumers Producers Goods Services Market forces Pricing.
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Chapter 9: The Price Puzzle What Drives the Market — Important Questions & Answers
What is meant by demand in a market?
- A. The quantity of goods sellers are willing to produce
- B. The quantity of a good buyers are willing and able to buy at a given price
- C. The total number of goods available in the market
- D. The cost of producing a good
Answer: B. The quantity of a good buyers are willing and able to buy at a given price
Demand means the quantity of a good that consumers are both willing and able to buy at a particular price.
Demand means the quantity of a good that consumers are both willing and able to buy at a particular price.
What is supply?
- A. The quantity of a good producers are willing to sell at a given price
- B. The desire of buyers to purchase a good
- C. The total money earned by consumers
- D. The price fixed by the government
Answer: A. The quantity of a good producers are willing to sell at a given price
Supply refers to the quantity of a good that producers are willing to offer for sale at a given price.
Supply refers to the quantity of a good that producers are willing to offer for sale at a given price.
If the price of a product falls, what usually happens to its demand?
- A. Demand decreases
- B. Demand increases
- C. Demand becomes zero
- D. Demand remains unchanged always
Answer: B. Demand increases
Generally, when price falls, more consumers are willing and able to buy the product, so demand increases.
Generally, when price falls, more consumers are willing and able to buy the product, so demand increases.
A sudden increase in the price of a substitute good, such as tea, may lead to:
- A. A decrease in demand for coffee
- B. An increase in demand for coffee
- C. A decrease in supply of coffee only
- D. No change in market behavior
Answer: B. An increase in demand for coffee
When the price of a substitute rises, consumers often switch to the other good, increasing its demand.
When the price of a substitute rises, consumers often switch to the other good, increasing its demand.
Why do producers usually supply more of a good at a higher price?
- A. Because higher price increases production cost
- B. Because higher price gives greater profit and encourages more supply
- C. Because consumers stop buying at higher prices
- D. Because demand always becomes zero
Answer: B. Because higher price gives greater profit and encourages more supply
Higher prices generally increase producers' profit, so they are willing to supply more.
Higher prices generally increase producers' profit, so they are willing to supply more.