Chapter Exam

Unit 3: Demand Analysis — Online MCQ Test

Q: If the price of tea rises and the demand for coffee increases, tea and coffee are:

Answer: C. Substitute goods — When the rise in price of one good increases demand for another, the two are substitutes.

Q: Which of the following goods is most likely to have a relatively inelastic demand?

Answer: A. Salt — Necessities like salt have few close substitutes and are usually demanded even when prices change.

Q: A rise in the price of petrol leads to a fall in demand for cars. This indicates that petrol and cars are:

Answer: A. Complementary goods — A rise in the price of one complementary good reduces demand for the other, so petrol and cars are complements in this context.

ECONOMICS · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board

Practice Unit 3: Demand Analysis with a free chapter-wise online MCQ test for Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR ECONOMICS. This chapter covers: Focusing on demand theory this chapter details Law of Demand demand schedule determinants price elasticity income elasticity cross elasticity and demand forecasting methods.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Unit 3: Demand Analysis — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 11 INTERMEDIATE 1 YEAR ECONOMICS — Unit 3: Demand Analysis, with answers and explanations. These are sample questions; the exam has its own separate question set.

What does the Law of Demand state?

A. When price rises, quantity demanded rises
B. When price falls, quantity demanded rises, other things remaining the same ✓
C. Demand is fixed regardless of price
D. Quantity demanded and price always move in the same direction

Answer: B. When price falls, quantity demanded rises, other things remaining the same
The Law of Demand states an inverse relationship between price and quantity demanded, assuming other factors remain constant.

Which of the following is a demand schedule?

A. A list showing prices and corresponding quantities demanded ✓
B. A list of costs of production
C. A statement of supply conditions
D. A tax table for consumers

Answer: A. A list showing prices and corresponding quantities demanded
A demand schedule shows various prices of a commodity and the quantities demanded at each price.

If the price of tea rises and the demand for coffee increases, tea and coffee are:

A. Complementary goods
B. Inferior goods
C. Substitute goods ✓
D. Giffen goods

Answer: C. Substitute goods
When the rise in price of one good increases demand for another, the two are substitutes.

Which of the following goods is most likely to have a relatively inelastic demand?

A. Salt ✓
B. Luxury car
C. Brand-new smartphone
D. Movie tickets

Answer: A. Salt
Necessities like salt have few close substitutes and are usually demanded even when prices change.

A rise in the price of petrol leads to a fall in demand for cars. This indicates that petrol and cars are:

A. Complementary goods ✓
B. Substitute goods
C. Inferior goods
D. Independent goods

Answer: A. Complementary goods
A rise in the price of one complementary good reduces demand for the other, so petrol and cars are complements in this context.

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