Question : "A change in demand" most strongly suggests a -
Option 1: Movement along the curve
Option 2: Movement along the price curve
Option 3: Change in quantity demanded of a good
Option 4: Shift in the demand curve
Correct Answer: Shift in the demand curve
Solution : A shift in demand reflects a change in consumer preferences towards a certain commodity or service, regardless of price changes. Changes in consumer preferences, income levels, or the price being charged for a comparable product could all be the cause of the change. Hence option d is the correct answer.
Question : The demand curve's movement serves as an example.
Option 1: Income effect
Option 2: Change in quantity demanded
Option 3: Complement effect
Option 4: Shift in quantity demanded
Question : When demand is perfectly inelastic, a change in price will result in:
Option 1: No change in quantity demanded.
Option 2: A small change in quantity demanded.
Option 3: A large change in quantity demanded.
Option 4: An unpredictable change in quantity demanded.
Question : When demand is perfectly elastic, a decrease in price will result in:
Question : The price elasticity of demand is calculated as the:
Option 1: Percentage change in quantity demanded divided by the percentage change in price.
Option 2: Percentage change in price divided by the percentage change in quantity demanded.
Option 3: Total change in quantity demanded divided by the total change in price.
Option 4: Total change in price divided by the total change in quantity demanded.
Question : Assertion: If price falls and quantity demanded increases, this is represented by a movement along a given demand curve. Reason: If price falls and quantity demanded increases, this is represented by a shift of the demand curve.
Option 1: A correct R false
Option 2: A false R correct
Option 3: A correct R explains A
Option 4: A correct R does not explain A
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