CA Foundation - Eco Ch 2 - Demand Quiz 35 Created on July 13, 2023 By admin Demand Quiz 1 1 / 20 In economics, Effective Demand for a thing depends on: Desire Means to purchase Willingness to use those means for that purchase All of the above 2 / 20 The quantity demanded is a ________. Flow Stock Single isolated purchase Concept without reference to time. 3 / 20 The quantity demanded is always expressed ________. Separately in isolation Separately with quantity supplied At a given price None of these 4 / 20 Demand is the ________. the desire for a commodity given its price and those of related commodities. the entire relationship between the quantity demanded and the price of a good other things remaining the same. willingness to pay for a good if income is larger enough. ability to pay for a good. 5 / 20 Demand for a commodity refers to: Desire backed by ability to pay for the commodity. Need for the commodity and willingness to pay for it. The quantity demanded of that commodity at a certain price. The quantity of the commodity demanded at a certain price during any particular period of time. 6 / 20 ________ is/are the types of Related Commodities. Complementary Substitutes Complementary and Substitutes Complementary or Substitutes 7 / 20 Ceteris Paribus, the demand for a commodity is inversely related to its price. This happens because of: Income Effect Substitution Effect Both (a) & (b) None of above 8 / 20 The term “Ceteris Paribus” refers to ________. Other things being equal Other things also change Other things may change None of the above 9 / 20 Which of the following will affect the demand for non-durable goods? Disposable income Price Demography All of the above 10 / 20 All of the following are determinants of demand except: Tastes and preferences. Quantity supplied Income of the consumer Price of related goods 11 / 20 There is a ________ relation between the demand for a product and the price of its substitutes. Direct Positive Indirect Both (a)&(b) 12 / 20 Two Commodities are called ________ when they satisfy the same want and can be used with ease in place of one another. Substitutes Complementary Unrelated Opposite 13 / 20 When two commodities are complementary, a fall in the price of one (other things being equal) will cause the demand for the other to ________. Fall Rise Remain constant Fall substantially 14 / 20 ________ are those goods which are consumed together or simultaneously. Complementary Substitutes Similar Unrelated 15 / 20 Which one of the following set of Commodities represents Complementary goods? Tea and Sugar Automobile and Petrol Pen and ink All of the above 16 / 20 Which of the following pairs of goods is an example of substitutes? Tea and sugar. Tea and coffee. Pen and ink. Shirt and trousers. 17 / 20 Which of the following will affect the demand for non-durable goods? Disposable income Price Demography All of the above 18 / 20 When goods are substitutes, a fall in the price of one (Ceteris Paribus) leads to in the quantity demanded of its substitutes. Rise Fall Constant No effect 19 / 20 ________ are the commodities for which the quantity demanded rises only up to a certain level of in-come and decreases with an increase in money income beyond this level. Inferior Goods Normal Goods Consumption Goods Durable Goods 20 / 20 Highly priced goods are consumed by status seeking rich people to satisfy their need for conspicuous consumption. This is called as ________. Veblen Effect Snob Effect Helen Effect None of these Your score isThe average score is 75% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 28 Created on July 14, 2023 By admin Demand Quiz 2 1 / 20 A good which cannot be consumed more than once is known as ________. Durable good Non-durable good Producer good None of the above 2 / 20 Conspicuous goods are also known as: Prestige goods. Snob goods. Veblen goods. All of the above 3 / 20 What will happen in the rice market if buyers are expecting higher rice prices in the near future? The demand for rice will increase. The demand for rice will de-crease. The demand for rice will be unaffected. None of the above. 4 / 20 Which of the following is an incorrect statement? When goods are substitutes, a fall in the price of one (ceteris pari¬bus) leads to a fall in the quantity demanded of its substitutes. When commodities are comple-ments, a fall in the price of one (other things being equal) will cause the demand of the other to rise. As the income of the consumer increases, the demand for the commodity increases always and vice versa. When a commodity becomes fashionable people prefer to buy it and therefore its demand increases. 5 / 20 If the price of Pepsi decreases rela-tive to the price of Coke and 7-UP, the demand for: Coke will decrease. 7-Up will decrease. Coke and 7-UP will increase. Coke and 7-Up will decrease. 6 / 20 “High priced goods consumed by status seeking rich people to satisfy their need for conspicuous goods” is: Veblen effect Bandwagon effect Snob effect Demonstration effect 7 / 20 Potato chips and popcorn are sub-stitutes. A rise in the price of potato chips will ________ the demand for popcorn and the quantity of popcorn will ________. Increase; increase Increase; decrease Decrease; decrease. Decrease; increase. 8 / 20 Chicken and fish are substitutes. If the price of chicken increases, the demand for fish will ________. Increase or decrease but the de-mand curve for chicken will not change. Increase and the demand curve for fish will shift rightwards. Not change but there will be a movement along the demand curve for fish. Decrease and the demand curve for fish will shift leftwards. 9 / 20 The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are ________. Normal goods. Complements Substitutes Inferior goods 10 / 20 A relative price is ________. Price expressed in terms of money. What you get paid for babysitting your cousin. The ratio of one money price to another. Equal to a money price. 11 / 20 When the price of tea decreases, people reduces the consumption of coffee. Then the goods are ________ Independent Variable Substitutes Inferior goods Normal goods 12 / 20 With an increase in the price of diamond, the quantity demanded also increases. This is because it is a: Substitute good. Complementary good. Conspicuous good. None of the above. 13 / 20 With a fall in the price of a com-modity: Consumer’s real income increases. Consumer’s real income de-creases. There is no change in the real income of the consumer. None of the above. 14 / 20 At higher prices people demand more of certain goods not lor their worth but for their prestige value – This is called ________. Veblen effect. Giffen paradox. Speculative effect. None of the above. 15 / 20 If the price of Orange Juice increases, the demand for Apple Juice will ________. Increase Decrease Remain the same. Become negative 16 / 20 When Price of a commodity increases what will be the affect on Quantity demanded? Increases Decreases No change None of these 17 / 20 The Law of Demand, assuming other things to remain constant, estab-lishes the relationship between: Income of the consumer and the quantity of a good demanded by him. Price of a good and the quantity demanded. Price of a good and the demand for its substitute. Quantity demanded of a good and the relative prices of its complementary goods. 18 / 20 In a demand function, the deter-minants of demand like price, money income, tastes & preferences, etc. may be regarded as Dependent Variables Independent Variables Related Variables Complex variables 19 / 20 In a demand function, the demand for a product is the ________. Independent Variable Explanatory Variable Dependent variable Complex variable 20 / 20 A Symbolic statement of a rela-tionship between the dependent and the independent variables is called as ________. Function Sets Equation Variable Your score isThe average score is 76% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 22 Created on July 14, 2023 By admin Demand Quiz 3 1 / 20 If price of the commodity increases, what will be the effect on Quantity demanded? Decreases Increases No change Can’t say 2 / 20 Comforts lies between ________. Inferior goods and necessaries. Luxuries and inferior goods. Necessaries and luxuries. None of the above. 3 / 20 A decrease in the demand for cameras, other things remaining the same will. Increase the number of cameras bought. Decrease the price but increase the number of cameras bought. Increase the price of cameras. Decrease the price and decrease in the number of cameras bought. 4 / 20 In case of Normal goods, Rise in price leads to ________? Fall in demand Rise in demand No Change Initially rise then ultimately fall 5 / 20 An increase in the demand for computers, other things remaining same, will: Increase the number of comput-ers bought. Decrease the price but increase the number of computers bought. Increase the price of computers. Increase the price and number of computers bought. 6 / 20 All but one of the following are assumed to remain the same while drawing an individual’s demand curve for a commodity. Which one is it? The preference of the individual. His monetary income. Price of the commodity. Price of related goods. 7 / 20 ________ is a graphical pre-sentation of the ________. Demand Curve, Demand Sched-ule Demand Schedule, Demand Curve Demand Curve, Supply Schedule Supply Curve, Demand Schedule 8 / 20 The Demand Schedule depicts ________ relationship between price and quantity demanded. Direct Inverse Adverse None of these 9 / 20 A Table which represents the different prices of a good and the cor-responding quantity demanded per unit of time is called as ________. Demand Curve Demand Table Demand Schedule Demand Tabulation 10 / 20 Who has given the law of Demand? Alfred Marshall Paul Samuelson Robbins J.B. Say 11 / 20 The demand curve has a ________ Slope. Positive Negative Circular No 12 / 20 The ________ sloping Demand Curve is in accordance with the law of demand which describes an price demand relationship. Upward, inverse Downward, Inverse Upward, direct Download, direct 13 / 20 The sum of individual demands for a product at a price per unit of time is called as ________. Firm’s Demand Market Demand Goods available in market Goods to be sold in market 14 / 20 The lateral summation of indi¬vidual demand Curves is regarded as ________. Economy Demand Curve Market Demand Curve Product Demand Curve Marginal Demand Curve 15 / 20 If we plot the market demand sched-ule on a graph, we get ________. Demand Chart Market Demand Chart Demand Curve Market Demand Curve 16 / 20 The market Demand Schedule indicates ________ relationship between price and quantity demanded of a commodity. Direct Inverse Circular No 17 / 20 The table which represents the sum of various quantities demanded by different consumers in the market is called as ________. Demand Schedule Individual Demand Schedule Market Demand Schedule Market Demand Curve 18 / 20 According to ________, the consumer has diminishing utility for each additional unit of a commodity and therefore, he will be willing to pay only less for each additional unit. Marshall Robbins Samuelson None of these 19 / 20 A Consumer maximizes his satisfaction when the Marginal utility of the commodity is ________ its price. Equal to Less than More than Less than or equal to 20 / 20 The operations of diminishing marginal utility and the act of the Consumer to equalize the utility of the commodity with its price result in a ________ demand curve. Downward Sloping Upward Sloping Straight line Hyperbola upward Your score isThe average score is 70% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 19 Created on July 14, 2023 By admin Demand Quiz 4 1 / 20 ________ has/have explained the law of demand in terms of Substitution Effect and Income Effect. Marshall Hicks Allen Both (b) & (c) 2 / 20 As a result of fall in the price of a commodity, consumer’s real income or purchasing power increases. This increase in the real income induces him to buy more of that commodity. This is technically termed as: Price Effect Substitution Effect Income Effect Both (b) & (c) 3 / 20 In which of the following cases, the law of demand holds true? Normal Goods Giffen Goods Speculative Goods Necessary Goods 4 / 20 Which one of the following may be Considered as a rationale of the law of demand? Price Effect Giffen Goods Returns to Scale None of these 5 / 20 When total demand for a commodity whose price has fallen increases, it is due to: Income effect Substitution effect Complementary effect Price effect 6 / 20 Certain commodities have multiple uses. These different uses of a commodity make the demand curve ________ reacting to changes in price. Slope downwards Slope Upwards Straight Line Both (a) & (b) 7 / 20 Which one of the following is not the rationale of the law of Demand? Law of Diminishing Marginal Utility Price Effect Arrival of New Customers. Change of Taste & Performances 8 / 20 In the case of a Giffen good, the demand curve will be: Horizontal Downward-sloping to the right Vertical Upward-sloping to the right 9 / 20 In case of inferior goods, with rise of income of consumes, demand of goodwill? Increases Decreases No change None of these 10 / 20 For what type of goods does demand fall with a rise in income levels of households? Inferior goods Substitutes Luxuries Necessities 11 / 20 Which one of the following is an exception to the law of demand? Future expectations about prices Demand for necessaries Speculative Goods All of these 12 / 20 Higher the price of diamonds, higher is the prestige value attached to them and hence higher is the demand for them. These goods are called as ________. Conspicuous goods Giffen goods Normal goods None of these 13 / 20 The change in demand will be regarded as expansion of demand, if the increase in quantity demanded is due to ________. Price of Related Goods Price of goods Change in income Change in Taste & Preferences 14 / 20 When, as a result of increase in price, the quantity demanded decreases, it is called as ________. Expansion of Demand Increase in demand Both (a) & (b) None of these 15 / 20 In Economics, when demand for a commodity increases with a fall in its price it is known as: Contraction of demand. Expansion of demand. No change in demand None of the above 16 / 20 An example of a good that exhibit direct price-demand relationship is ________. Giffen goods Complementary goods Substitute goods None of the above 17 / 20 In case ________, there is an inverse relationship between income and demand for a product. Substitute goods Complementary goods Giffen Goods None of the above 18 / 20 ________ refers to a change along a curve i.e. movement from one point to another on the same curve. Expansion/Contraction of Demand Increase/Decrease in Demand Shift of Demand Curve None of these 19 / 20 Movement along the demand curve may be due to ________. Expansion of Demand Contraction of Demand Increase/Decrease in Demand Both (a) & (b) 20 / 20 Contraction of demand is the result of: Decrease in the number of con-sumers Increase in the price of the good concerned Increase in the prices of other goods Decrease in the income of purchasers Your score isThe average score is 67% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 16 Created on July 14, 2023 By admin Demand Quiz 5 1 / 20 A movement along the demand curve for soft drinks is best described as: An increase in demand A decrease in demand A change in quantity demanded A change in demand 2 / 20 ________ the demand curve in¬dicates that there is a change in demand at each possible price because one or more other factors, such as income, tastes or the price of some other goods, etc. have changed. A Shift of A movement along No movement in None of these 3 / 20 The movement upwards or downwards on the same demand curve resulting from a change in the price of the commodity is called as ________. Change in demand Change in quantity demanded Shifting of demand Curve Increase in demand 4 / 20 A leftward shift in the demand curve may be due to : Fall in income Fall in the Price of Substitute Decrease in Population Any of the above 5 / 20 Suppose the price of Pepsi in-creases, we will expect the demand curve of Coca Cola to: Shift towards left since these are substitutes Shift towards right since these are substitutes Remain at the same level None of the above 6 / 20 An Increase in demand can result from: A decline in the market price An increase in income A reduction in the price of substitutes An increase in the price of complements 7 / 20 When more quantities are demand¬ed at the same price due to reasons other than price of the commodity, there will be ________ in the demand Curve: Rightward shift Leftward shift No shift Any of (a) & (b) 8 / 20 A decrease in price will result in an increase in total revenue if : The percentage change in quantity demanded in less than the percentage change in price The percentage change in quantity demanded is greater than the percentage change in price. Demand is inelastic The consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high 9 / 20 Identify the coefficient of price elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price: Equal to one Greater than one Smaller than one Zero 10 / 20 The price of a commodity decreases from ₹ 6 per unit to ₹ 4 Per unit and quantity demanded of the goods in¬creased from 10 units to 15 units. The Co-efficient of Price Elasticity will be ________. 3 2 1 4 11 / 20 Elasticity of demand is the percent-age change in ________ divided by the percentage change in on which demand depends. Quantity demanded, one of the variables Quantity demanded, all the valuables Quantity supplied, all the valuables Quantity supplied, one of the variables 12 / 20 Which of the following may be a reason behind rightward shift of the demand curve? Rise in price of substitute Fall in price of substitute Rise of price of same commodity Fall in price of same commodity 13 / 20 The Concept of point elasticity is used for measuring price elasticity where the change in price is ________. Finite Limited Infinite small None of the above 14 / 20 In the case of a straight line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be: 0 1 1.5 2 15 / 20 Which of the following statements about price elasticity of demand is correct? Price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good. Price elasticity of demand is computed as the percentage change in quantity demanded divided by the percentage change in price. Price elasticity of demand in the long run would be different from that of the short run. All the above 16 / 20 If price decreases from ₹ 80 to ₹ 60 and elasticity of demand is 1.25 then ________. Demand increase by 25% Demand decrease by 25% Remains constant None of the above 17 / 20 An increase in price will result in an increase in total revenue if: The percentage change in quan-tity demanded is less than the percentage change in price. The percentage change in quan-tity demanded is greater than the percentage change in price. Demand is elastic The consumer is operating along a linear demand curve at a point at which the price is very high and the quantity demanded is very low 18 / 20 Elasticity at point A = ∞, at B = > 1, at C = 1, at D = < 1 and E = 0 Elasticity at A = 0, at B = 1 and E = ∞ Elasticity at A = 0, at B > 1, at C = 1, at D = < 1 and at E = 0 None of these 19 / 20 The price elasticity of demand at the midpoint of the straight line demand curve under point method is ________. 0 1 > 1 < 1 20 / 20 Point elasticity is useful for which of the following situations? The bookstore is considering doubling the price of notebooks. A restaurant is considering lowering the price of its most expensive dishes by 50 per cent. An auto producer is interested in determining the response of consumers to the price of cars being lowered by ₹ 100. None of the above Your score isThe average score is 62% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 12 Created on July 14, 2023 By admin Demand Quiz 6 1 / 20 The price of a commodity decreases from ₹ 6 to ₹ 4 and the quantity de-manded of the good increases from 10 units to 15 units, and the coefficient of price elasticity. (Use Point Elasticity Method) 1.5 2.5 – 1.5 0.5 2 / 20 If the price of air-conditioner increases from ₹ 30,000 to ₹ 30,010 and resultant change in demand is negligible, we use the measure of ________ to measure elasticity. Point elasticity Perfect elasticity Perfect inelasticity Price elasticity 3 / 20 If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be: Horizontal Vertical Positively sloped Negatively sloped 4 / 20 If the local pizzeria raises the price of a medium pizza from ₹ 60 to ₹ 100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand for pizzas is: (Use Arc Elasticity Method) 0.67 1.5 2.0 3.0 5 / 20 Suppose a department store has a sale on its silverware. If the price of a plate-setting is reduced from ₹ 300 to ₹ 200 and the quantity demanded increases from 3,000 plate-settings to 5,000 plate-settings, what is the price elasticity of demand for silverware? (Use Arc Elasticity Method) 0.8 1.0 1.25 1.50 6 / 20 Suppose the price of movies seen at a theatre rises from ₹ 120 per person to ₹ 200 per person. The theatre manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons. What is the price elasticity of demand for movies? (Use Arc Elasticity Method) 5 8 1.0 1.2 7 / 20 Elasticity between two points: Point elasticity Arc elasticity Cross elasticity None 8 / 20 Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics? The good has many substitutes. The good is a luxury (as opposed to a necessity). The good is a small part of the consumer’s income. There is a great deal of time for the consumer to adjust to the change in prices. 9 / 20 Demand for a good will tend to be more elastic if it exhibits which of the following characteristics? It represents a small part of the consumer’s income. The good has many substitutes available. It is a necessity (as opposed to a luxury). There is little time for the consumer to adjust to the price change. 10 / 20 Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively: Large fall in quantity demanded Large fall in demand Small fall in quantity demanded Small fall in demand 11 / 20 If electricity demand is inelastic, and electricity charges increase, which of the following is likely to occur? Quantity demanded will fall by a relatively large amount. Quantity demanded will fall by a relatively small amount. Quantity demanded will rise in the short run, but fall in the long run. Quantity demanded will fall in the short run, but rise in the long run. 12 / 20 The price of hot dogs increases by 22% and the quantity of hot dogs demanded falls by 25%. This indicates that demand for hot dogs is: Elastic Inelastic Unitarily elastic Perfectly elastic 13 / 20 The price of a good has decreased from f 100 to ₹ 60 per unit. If the price elasticity of demand for it is 1.5 and the original quantity demanded is 30 units, the new quantity demanded will be ________. 18 Units 30 Units 48 Units 60 Units 14 / 20 The demand for goods like com-mon salt, matches, buttons, etc. tends to be ________ because a household spends only a fraction of their income on each of them. Inelastic Highly inelastic Highly elastic Elastic 15 / 20 Which one of the following is / are the determinants of price elasticity? Availability of substitutes Time period Price range All of the above 16 / 20 When, as a result of the change in price of a good, the total expenditure on the goods or total revenue received from those good remains the same, the price elasticity for the good is equal to ________. Zero Unity More than one Less than one 17 / 20 Using total outlay method, We cannot find exact co-efficient of Price Elasticity. We can find exact co-efficient of Price Elasticity. We cannot determine whether the good is elastic or inelastic. None of the above 18 / 20 If there is no change at all in the quantity demanded, when price changes, the elasticity will be ________. Zero Unitary Greater than one Less than one 19 / 20 If elasticity is ________, then the quantity demanded does not respond at all to a price change. Zero One Greater than one Less than one 20 / 20 The demand is said to be ________ when the percentage change in quantity demanded is less than the percentage change in price. Elastic Inelastic Perfectly elastic None of the above Your score isThe average score is 63% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 8 Created on July 14, 2023 By admin Demand Quiz 7 1 / 20 In case of wheat & Common salt, the nature of Price elasticity of demand is ________. Elastic Inelastic Perfectly Elastic None of the above 2 / 20 If a Consumer is a habitual consumer of a commodity, no matter how much its price changes, the demand for the Commodity will be ________. Elastic Inelastic Perfectly Elastic Unitary 3 / 20 The quantity purchased remains constant irrespective of the change in income. This is known as ________. Negative income elasticity of demand Income elasticity of demand less than one Zero income elasticity of demand Income elasticity of demand is greater than one 4 / 20 Suppose a consumer’s income increases from ₹ 30,000 to ₹ 36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs to 30 CDs. What is the con-sumer’s income elasticity of demand for CDs? (Use Arc Elasticity Method) 0.5 1.0 1.5 2.0 5 / 20 Given the following four possibili-ties, which one results in an increase in total consumer expenditure₹ Demand is unitary elastic and price falls Demand is elastic and price rises Demand is inelastic and price falls Demand is inelastic and prices rises 6 / 20 If the demand for a good is inelas-tic, an increase in its price will cause the total expenditure of the consumers of the good to: Remain the same Increase Decrease Any of these 7 / 20 The greater the proportion of in-come spent on a commodity, generally the ________ will be its elasticity of demand and vice versa. Greater Lesser Either (a) or (b) None of these 8 / 20 For all ________ goods, the income elasticity is positive. Normal Interior Luxury All of the above 9 / 20 Which one of the following is the preposition on the relationship be¬tween income elasticity of demand and the proportion of income spent on it? If the proportion of income on a good remains the same as income increase, then income elasticity for the good is equal to one If the proportion of Income spent on good increases as income in¬creases, then the income elasticity for the goods is greater than one If the proportion of income spent on a good decreases as income rises, the income elasticity for the good is less than one All of the above 10 / 20 Income elasticity of demand is calculated by dividing percentage change in ________ by the percentage change in ________. Income, Demand Demand, Income Income, Price Demand, Price 11 / 20 As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall. This means: Income elasticity of demand less than one Negative income elasticity of demand Zero income elasticity of demand Unitary income elasticity of de-mand 12 / 20 When income increases the money spent on necessaries of life may not increase in the same proportion. This means: Income elasticity of demand is zero Income elasticity of demand is one Income elasticity of demand is greater than one Income elasticity of demand is less than one 13 / 20 Suppose the income elasticity of education in private school in India is 1.6. What does this indicate: Private school education is a luxury Private school education is a necessity Private school education is an inferior commodity We should have more private schools 14 / 20 The income elasticity of tomatoes is 0.25, it means tomatoes are: Inferior goods Luxury goods Normal goods Can’t say 15 / 20 If, as people’s income increases, the quantity demanded of a good de-creases, the good is called ________. A substitute. A normal good An inferior good A complement 16 / 20 If a good is a luxury, its income elasticity of demand is: Positive and less than 1. Negative but greater than 1. Positive and greater than 1. Zero 17 / 20 For all ________ goods, the income elasticity is greater than one. Normal Interior Luxury All of the above 18 / 20 The income elasticity of demand of commodity “Buttons” is ________. Greater than one Less than one Zero One 19 / 20 If the income elasticity is less than one, it shows that the goods is either relatively least important in the eyes of consumer or it is a ________. Inferior Luxury Necessity None of these 20 / 20 Suppose potatoes have (-).0.4 as income elasticity. We can say from the data given that: Potatoes are inferior goods. Potatoes are superior goods. Potatoes are necessities. There is a need to increase the income of consumers so that they can purchase potatoes. Your score isThe average score is 71% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 9 Created on July 14, 2023 By admin Demand Quiz 8 1 / 20 ‘Bajra’ is an inferior commod¬ity in the eyes of the household. Its income elasticity of demand will be ________. More than 1 Equal to 1 Less than 1, but greater than 0 Negative 2 / 20 Cross elasticity of demand refers to the quantities of commodity which will be demanded in response to ________, keeping other things remaining the same. Income of consumer Price of same commodity Price of Related commodity Both (b) & L(C) 3 / 20 The cross elasticity between personal computers and software’s is: Positive Negative Zero One 4 / 20 The cross elasticity between Bread and DVDs is: Positive Negative Zero One 5 / 20 Cross elasticity of perfect sub-stitutes is: Zero Negative One Infinity 6 / 20 There is a relationship between price of a commodity and the demand for its complementary goods (other things remaining the same). Inverse Positive Direct Any of (b) & (c) 7 / 20 In case of substitute commodities, the cross demand curve slopes ________. Upwards Downwards Circular Parabolic 8 / 20 In case of Complementary Goods, a rise in the price of one leads to a fall in the quantity demanded of the other. The cross elasticity of demand between these will be ________. Positive Negative Zero Infinity 9 / 20 If the quantity demanded of mutton increases by 5% when the price of chicken increases by 20%, the cross¬price elasticity of demand between mutton and chicken is: – 0.25 0.25 – 4 4 10 / 20 If the goods are substituted (like tea and coffee), the cross elasticity between them is ________. Positive Negative Zero Infinity 11 / 20 When the numerical value of cross elasticity between two goods is very high, it means: The goods are perfect complements and therefore have to be used together. The goods are perfect substitutes and can be used with ease in place of one another. There is a high degree of substitutability between the two goods. The goods are neutral and there-fore cannot be considered as substitutes. 12 / 20 If two goods are perfect substitutes for each other, the cross elasticity between them is ________. One More than one Less than one Infinite 13 / 20 Usually, higher the value of advertising elasticity, greater will be the responsiveness of demand to change in advertisement. Therefore, usually advertising elasticity of demand is typically ________. Positive Unitary Negative Zero 14 / 20 Advertisement elasticity of sales or promotional elasticity of demand is the responsive of a good demanded to changes in ________. Price of Commodity Per Unit advertisement budget Firms spending on advertising Firms spending on distribution 15 / 20 The Cross elasticity is – 1.2. It represents that the commodities are: ________ in nature. Complementary Substituted Inferior Giffen 16 / 20 The price of 1 kg. of tea is ₹ 30. At this price, 5 kg of tea is demanded. If the price of coffee rises from ₹ 25 to ₹ 35 per kg, the quantity demanded of tea rises from 5 kg. to 8 kg. The cross price elastic of tea is ________. 1 0.5 1.5 0 17 / 20 When the numerical value of cross elasticity between two goods is very high, it means ________. The goods are perfect complements and therefore have to be used together. The goods are perfect substitutes and can be used with ease in place of one another. There is a high degree of substitutability between the two goods. The goods are neutral and there-fore cannot be considered as substitutes. 18 / 20 Advertisement elasticity of de¬mand values between ________ and ________. One, infinity Zero, infinity Zero, one (-) Infinity to (+) Infinity 19 / 20 What will be the advertisement elasticity?% Change in Demand = 30%% change in Price = Nil% change in advertisement Expenditure = 25% 1.2 0.83 1 25 20 / 20 When the demand changes at a higher rate than change in advertisement expenditure, the advertisement elasticity will be ________. Zero One More than 1 Less than 1 Your score isThe average score is 59% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 6 Created on July 14, 2023 By admin Demand Quiz 9 1 / 17 The zero advertisement Elasticity represents : Demand responds proportionately Demand does not respond proportionately Demand does not respond at all None of the above. 2 / 17 When the change in demand is less than proportionate change in advertisement expenditure, the advertisement elasticity (Ea) will be equal to ________. Ea = 0 Ea > 0 Ea < 1 Ea > 0 but < 1 3 / 17 The demand for cement in India is forecasted. It refers to ________. Micro level forecasting Long Term forecasting Industry level forecasting Firm level forecasting 4 / 17 Forecasting refers to knowing or measuring the status or nature of an event or variable ________ it occurs. Before When After Both (b) & (c) 5 / 17 Forecasting of demand is the Art and Science of predicting? Actual demand of a product at same future date Probable demand in future Total demand in future None of these 6 / 17 Method of demand forecasting does not include? Mathematical method Barometric method Expert opinion method Statistical method 7 / 17 Which of the following statements is correct? With the help of statistical tools, the demand can be forecasted accurately The more the number of sub-stitutes of a commodity, more elastic is the demand Demand for butter is perfectly elastic Gold jewellery will have negative income elasticity 8 / 17 Identify Producer’s goods out of following : Plant and Equipment Readymade clothes Residential Houses All of the above 9 / 17 Which of the following are con-sumer’s goods? Readymade clothes Prepared Food Residential Houses All of the above 10 / 17 If the demand for a product is independent of the demand for other goods, then it is called as ________. Derived Demand Autonomous Demand Industry Demand Implied Demand 11 / 17 The demand for a commodity that arises because of the demand for same other commodity (prevent product) is called as ________. Demand Direct Demand Derived Demand Implied Demand 12 / 17 ________ demand forecasting is generally useful in tactical decisions. Short-term Long-Term Very Long Period Both (a) & (b) 13 / 17 Which one of the following is the statistical method of demand forecasting? Trend Projection Method Fitting Equation Method Regression Analysis All of the above 14 / 17 Under ________ method of demand forecasting, the future demand is estimated by conducting market studies and experiments on consumer behaviour under actual, though controlled, market conditions. Controlled Experiment method Market Experiment Method Barometric Method Both (a) & (b) 15 / 17 ________ method of fore-casting includes the methods:# Complete Enumerations# Sample Survey# End Use Collective opinion Survey of Buyer’s intentions Expert Opinion Barometric 16 / 17 In order to find out turning points, it is necessary to find out the general behaviour of the economy. This method of forecasting is called as : Controlled Experiments Barometric Method Statistical Method None of these 17 / 17 Which of the following factors affects demand for non-durable consumer goods₹ Disposable Income Price Demography All of the above Your score isThe average score is 48% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
