Question : The elasticity of demand is the degree of responsiveness of demand for a commodity to a ___________.

Option 1: Change in consumer's wealth

Option 2: Change in the price of substitutes

Option 3: Change in consumer's taste

Option 4: Change  its price

Question : The market equilibrium for a commodity is determined by:

Option 1: the market supply of the commodity.

Option 2: the balancing of the force of demand and supply for the commodity.

Option 3: the intervention of the government.

Option 4: market demand of the commodity.

Question : Law of Demand states that there is a negative relationship between ______.

Option 1: demand for a commodity and its supply

Option 2: demand for a commodity and its price

Option 3: tax on a commodity and its price

Option 4: supply of a commodity and its price

Question : If a consumer's demand for a good moves in the same direction as the consumer's income, the consumer's demand for that good must be inversely related to the price of the good, which is called _____.

Option 1: law of demand

Option 2: law of supply

Option 3: law of substitute

Option 4: law of optimal choice

Question : If a consumer's income rises or the price of a complementary good falls, the-
 

Option 1: The product's demand curve shifts to the right.

Option 2: The product's demand curve shifts to the left.

Option 3: The product's supply curve shifts to the right.

Option 4: The product's supply curve shifts to the left.