Free The Demand Curve 01 Practice Test - 11th Grade - Commerce
Question 1
Individual demand refers to the quantity of the commodity that a consumer is able and willing to buy at each possible price during a given period of time.
True
False
SOLUTION
Solution : A
The given statement is true. Demand is the relationship between price and quantity demanded.
Question 2
Normal
Inferior
Complementary
None of the above
SOLUTION
Solution : A
The demand for normal goods increases as income increases.
Question 3
Demand for which of the following goods does not change with a change in income of the consumer?
Normal goods
Necessity goods
Inferior goods
None of the above
SOLUTION
Solution : B
Demand for necessary goods is inelastic.
Question 4
When the price of the substitute goods rise then demand for a given commodity
Rises
Falls
Remains constant
May increase or decrease
SOLUTION
Solution : A
When the price of a good change, people will substitute to cheaper alternatives and vice-versa.
Question 5
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
The price of the good under consideration
The price of other good
SOLUTION
Solution : C
In an individual demand curve for a commodity, the price of the good under consideration is not assumed to remain same.
Question 6
Demand for a product should have the following pre-requisite
Ability to buy
Willingness
Need
All of these
SOLUTION
Solution : D
All of them are pre-requisites of demand for a product.
Question 7
The value of elasticity of demand ranges from
Zero to one
One to infinity
Zero to infinity
None of these
SOLUTION
Solution : C
The value of elasticity of demand ranges from zero to infinity.
Question 8
As a result of rise in consumer's income, demand curve for coarse grain (inferior good):
becomes a horizontal straight line
becomes a vertical straight line
shifts to the right
shifts to the left
SOLUTION
Solution : D
As a result of rise in consumer's income, demand curve for coarse grain (inferior good) shifts to the left.
Question 9
In case of contraction of demand, we move:
from lower to upper point on the same demand curve
to right on the other demand curve
from upper point to lower pint on the same demand curve
to left on the other demand curve
SOLUTION
Solution : A
In case of contraction of demand, we move from lower to upper point on the same demand curve.
Question 10
Which of the following statements about price elasticity of demand is INCORRECT?
When the percentage decrease in the price of a good is greater than the percentage increase in its quantity demanded, the elasticity of demand for it is more than 1.
When the percentage increase in the price of a good is greater than the percentage decrease in its quantity demanded, the elasticity of demand for it is less than 1.
When the percentage decrease in the price of a good is greater than the percentage increase in its quantity demanded, the elasticity of demand for it is less than 1.
When the percentage decrease in the price of a good is the same as the percentage increase in its quantity demanded, the elasticity of demand for it is equal to 1.
SOLUTION
Solution : B
eD=% change in q% change in p
You can see that option B is incorrect.