Question : When the price of a car goes up, demand for petrol will______?
Option 1: Rise
Option 2: Fall
Option 3: Remains Constant
Option 4: None of the above.
Correct Answer: Fall
Solution : Cars and petrol are complementary goods, i.e., goods that are demanded together. In such cases, a rise in the price of one leads to a fall in the demand for the other good. Hence option B is the correct answer.
Question : With the rise in tea price, the demand for coffee:
Option 1: Fall
Option 2: Rises
Option 3: Constant
Option 4: None of the above
Question : What is an expansion in Demand Curve?
Option 1: Rise of demand due to the rise of the supply
Option 2: Rise of demand due to the Decreasing of the Price
Option 3: Deduction in Price, Lowering Demand
Option 4: Rise in Demand and Rise in Price
Question : Demand contraction occurs when:
Option 1: Price falls but demand remains stable
Option 2: Price rises and demand falls
Option 3: Price remains stable and demand falls
Option 4: Price rises and demand also rises
Option 2: Price rises and demand also rises
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
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