Question : Demand contraction occurs when:

Option 1: Price falls but demand remains stable

Option 2: Price rises and demand also rises
 

Option 3: Price remains stable and demand falls

Option 4:  Price rises and demand falls

Question : The law of demand states that when _____.

Option 1: income and price rise demand rises

Option 2: income rises demand rises

Option 3: price rises demand rises

Option 4: price falls demand rises

Question : For an inferior good , demand falls when 

Option 1: Price rises .

Option 2: Income rises.

Option 3: Price fall.

Option 4: Income fall.

Question :  Perfectly inelastic demand occurs when the price elasticity of demand is:

Option 1: 0

Option 2: 1

Option 3: Greater than 1

Option 4: Undefined

Question : If the price of a commodity rises, the demand for it _______.

Option 1: Rises

Option 2: Contracts

Option 3: Remain constant

Option 4: Becomes negative