CA Foundation - Eco Ch 2 - Demand Quiz

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Demand Quiz 1

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In economics, Effective Demand for a thing depends on:

2 / 20

The quantity demanded is a ________.

3 / 20

The quantity demanded is always expressed ________.

4 / 20

Demand is the ________.

5 / 20

Demand for a commodity refers to:

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________ is/are the types of Related Commodities.

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Ceteris Paribus, the demand for a commodity is inversely related to its price. This happens because of:

8 / 20

The term “Ceteris Paribus” refers to ________.

9 / 20

Which of the following will affect the demand for non-durable goods?

10 / 20

All of the following are determinants of demand except:

11 / 20

There is a ________ relation between the demand for a product and the price of its substitutes.

12 / 20

Two Commodities are called ________ when they satisfy the same want and can be used with ease in place of one another.

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 ________.

14 / 20

________ are those goods which are consumed together or simultaneously.

15 / 20

Which one of the following set of Commodities represents Complementary goods?

16 / 20

Which of the following pairs of goods is an example of substitutes?

17 / 20

Which of the following will affect the demand for non-durable goods?

18 / 20

When goods are substitutes, a fall in the price of one (Ceteris Paribus) leads to in the quantity demanded of its substitutes.

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.

20 / 20

Highly priced goods are consumed by status seeking rich people to satisfy their need for conspicuous consumption. This is called as ________.

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Demand Quiz 2

1 / 20

A good which cannot be consumed more than once is known as ________.

2 / 20

Conspicuous goods are also known as:

3 / 20

What will happen in the rice market if buyers are expecting higher rice prices in the near future?

4 / 20

Which of the following is an incorrect statement?

5 / 20

If the price of Pepsi decreases rela-tive to the price of Coke and 7-UP, the demand for:

6 / 20

“High priced goods consumed by status seeking rich people to satisfy their need for conspicuous goods” is:

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 ________.

8 / 20

Chicken and fish are substitutes. If the price of chicken increases, the demand for fish will ________.

9 / 20

The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are ________.

10 / 20

A relative price is ________.

11 / 20

When the price of tea decreases, people reduces the consumption of coffee. Then the goods are ________

12 / 20

With an increase in the price of diamond, the quantity demanded also increases. This is because it is a:

13 / 20

With a fall in the price of a com-modity:

14 / 20

At higher prices people demand more of certain goods not lor their worth but for their prestige value – This is called ________.

15 / 20

If the price of Orange Juice increases, the demand for Apple Juice will ________.

16 / 20

When Price of a commodity increases what will be the affect on Quantity demanded?

17 / 20

The Law of Demand, assuming other things to remain constant, estab-lishes the relationship between:

18 / 20

In a demand function, the deter-minants of demand like price, money income, tastes & preferences, etc. may be regarded as

19 / 20

In a demand function, the demand for a product is the ________.

20 / 20

A Symbolic statement of a rela-tionship between the dependent and the independent variables is called as ________.

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Demand Quiz 3

1 / 20

If price of the commodity increases, what will be the effect on Quantity demanded?

2 / 20

Comforts lies between ________.

3 / 20

A decrease in the demand for cameras, other things remaining the same will.

4 / 20

In case of Normal goods, Rise in price leads to ________?

5 / 20

An increase in the demand for computers, other things remaining same, will:

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?

7 / 20

________ is a graphical pre-sentation of the ________.

8 / 20

The Demand Schedule depicts ________ relationship between price and quantity demanded.

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 ________.

10 / 20

Who has given the law of Demand?

11 / 20

The demand curve has a ________ Slope.

12 / 20

The ________ sloping Demand Curve is in accordance with the law of demand which describes an price demand relationship.

13 / 20

The sum of individual demands for a product at a price per unit of time is called as ________.

14 / 20

The lateral summation of indi¬vidual demand Curves is regarded as ________.

15 / 20

If we plot the market demand sched-ule on a graph, we get ________.

16 / 20

The market Demand Schedule indicates ________ relationship between price and quantity demanded of a commodity.

17 / 20

The table which represents the sum of various quantities demanded by different consumers in the market is called as ________.

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.

19 / 20

A Consumer maximizes his satisfaction when the Marginal utility of the commodity is ________ its price.

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.

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Demand Quiz 4

1 / 20

________ has/have explained the law of demand in terms of Substitution Effect and Income Effect.

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:

3 / 20

In which of the following cases, the law of demand holds true?

4 / 20

Which one of the following may be Considered as a rationale of the law of demand?

5 / 20

When total demand for a commodity whose price has fallen increases, it is due to:

6 / 20

Certain commodities have multiple uses. These different uses of a commodity make the demand curve ________ reacting to changes in price.

7 / 20

Which one of the following is not the rationale of the law of Demand?

8 / 20

In the case of a Giffen good, the demand curve will be:

9 / 20

In case of inferior goods, with rise of income of consumes, demand of goodwill?

10 / 20

For what type of goods does demand fall with a rise in income levels of households?

11 / 20

Which one of the following is an exception to the law of demand?

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 ________.

13 / 20

The change in demand will be regarded as expansion of demand, if the increase in quantity demanded is due to ________.

14 / 20

When, as a result of increase in price, the quantity demanded decreases, it is called as ________.

15 / 20

In Economics, when demand for a commodity increases with a fall in its price it is known as:

16 / 20

An example of a good that exhibit direct price-demand relationship is ________.

17 / 20

In case ________, there is an inverse relationship between income and demand for a product.

18 / 20

________ refers to a change along a curve i.e. movement from one point to another on the same curve.

19 / 20

Movement along the demand curve may be due to ________.

20 / 20

Contraction of demand is the result of:

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Demand Quiz 5

1 / 20

A movement along the demand curve for soft drinks is best described as:

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.

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 ________.

4 / 20

A leftward shift in the demand curve may be due to :

5 / 20

Suppose the price of Pepsi in-creases, we will expect the demand curve of Coca Cola to:

6 / 20

An Increase in demand can result from:

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:

8 / 20

A decrease in price will result in an increase in total revenue if :

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:

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 ________.

11 / 20

Elasticity of demand is the percent-age change in ________ divided by the percentage change in on which demand depends.

12 / 20

Which of the following may be a reason behind rightward shift of the demand curve?

13 / 20

The Concept of point elasticity is used for measuring price elasticity where the change in price is ________.

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:

15 / 20

Which of the following statements about price elasticity of demand is correct?

16 / 20

If price decreases from ₹ 80 to ₹ 60 and elasticity of demand is 1.25 then ________.

17 / 20

An increase in price will result in an increase in total revenue if:

18 / 20

19 / 20

The price elasticity of demand at the midpoint of the straight line demand curve under point method is ________.

20 / 20

Point elasticity is useful for which of the following situations?

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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)

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.

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:

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)

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)

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)

7 / 20

Elasticity between two points:

8 / 20

Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics?

9 / 20

Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?

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:

11 / 20

If electricity demand is inelastic, and electricity charges increase, which of the following is likely to occur?

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:

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 ________.

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.

15 / 20

Which one of the following is / are the determinants of price elasticity?

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 ________.

17 / 20

Using total outlay method,

18 / 20

If there is no change at all in the quantity demanded, when price changes, the elasticity will be ________.

19 / 20

If elasticity is ________, then the quantity demanded does not respond at all to a price change.

20 / 20

The demand is said to be ________ when the percentage change in quantity demanded is less than the percentage change in price.

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Demand Quiz 7

1 / 20

In case of wheat & Common salt, the nature of Price elasticity of demand is ________.

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 ________.

3 / 20

The quantity purchased remains constant irrespective of the change in income. This is known as ________.

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)

5 / 20

Given the following four possibili-ties, which one results in an increase in total consumer expenditure₹

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:

7 / 20

The greater the proportion of in-come spent on a commodity, generally the ________ will be its elasticity of demand and vice versa.

8 / 20

For all ________ goods, the income elasticity is positive.

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?

10 / 20

Income elasticity of demand is calculated by dividing percentage change in ________ by the percentage change in ________.

11 / 20

As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall. This means:

12 / 20

When income increases the money spent on necessaries of life may not increase in the same proportion. This means:

13 / 20

Suppose the income elasticity of education in private school in India is 1.6. What does this indicate:

14 / 20

The income elasticity of tomatoes is 0.25, it means tomatoes are:

15 / 20

If, as people’s income increases, the quantity demanded of a good de-creases, the good is called ________.

16 / 20

If a good is a luxury, its income elasticity of demand is:

17 / 20

For all ________ goods, the income elasticity is greater than one.

18 / 20

The income elasticity of demand of commodity “Buttons” is ________.

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 ________.

20 / 20

Suppose potatoes have (-).0.4 as income elasticity. We can say from the data given that:

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Demand Quiz 8

1 / 20

‘Bajra’ is an inferior commod¬ity in the eyes of the household. Its income elasticity of demand will be ________.

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.

3 / 20

The cross elasticity between personal computers and software’s is:

4 / 20

The cross elasticity between Bread and DVDs is:

5 / 20

Cross elasticity of perfect sub-stitutes is:

6 / 20

There is a relationship between price of a commodity and the demand for its complementary goods (other things remaining the same).

7 / 20

In case of substitute commodities, the cross demand curve slopes ________.

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 ________.

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:

10 / 20

If the goods are substituted (like tea and coffee), the cross elasticity between them is ________.

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When the numerical value of cross elasticity between two goods is very high, it means:

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If two goods are perfect substitutes for each other, the cross elasticity between them is ________.

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 ________.

14 / 20

Advertisement elasticity of sales or promotional elasticity of demand is the responsive of a good demanded to changes in ________.

15 / 20

The Cross elasticity is – 1.2. It represents that the commodities are: ________ in nature.

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 ________.

17 / 20

When the numerical value of cross elasticity between two goods is very high, it means ________.

18 / 20

Advertisement elasticity of de¬mand values between ________ and ________.

19 / 20

What will be the advertisement elasticity?
% Change in Demand = 30%
% change in Price = Nil
% change in advertisement Expenditure = 25%

20 / 20

When the demand changes at a higher rate than change in advertisement expenditure, the advertisement elasticity will be ________.

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Demand Quiz 9

1 / 17

The zero advertisement Elasticity represents :

2 / 17

When the change in demand is less than proportionate change in advertisement expenditure, the advertisement elasticity (Ea) will be equal to ________.

3 / 17

The demand for cement in India is forecasted. It refers to ________.

4 / 17

Forecasting refers to knowing or measuring the status or nature of an event or variable ________ it occurs.

5 / 17

Forecasting of demand is the Art and Science of predicting?

6 / 17

Method of demand forecasting does not include?

7 / 17

Which of the following statements is correct?

8 / 17

Identify Producer’s goods out of following :

9 / 17

Which of the following are con-sumer’s goods?

10 / 17

If the demand for a product is independent of the demand for other goods, then it is called as ________.