Question : Which of the statement is correct A: The horizontal summing of the individual demand curves results in the market demand curve. B: The market demand curve is flatter than the individual demand curve.
Option 1: Only A true
Option 2: Only B true
Option 3: Both are true
Option 4: Both are false
Correct Answer: Both are true
Solution : In comparison to individual demand curves, the market demand curve is flatter. This occurs because as prices fluctuate, the market's demand varies proportionately more than individual demand does. The market demand curve is obtained by a Horizontal summation of the individual demand curves. Hence option c is the correct answer.
Question : Assertion (A): The demand curve for the market is flatter than the demand curve for an individual.
Reason (R): By horizontally summing individual demand, the market demand curve is created.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is True
Question : Which of the following statement is correct? Statement 1:Instruments of the money market are close substitutes for money. Statement 2: Discount Finance House of India provides a ready market for money market instruments.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Question : Statement 1: An individual's indifference curve is concave to the origin.
Statement 2: The concavity of indifference curves reflects the diminishing marginal rate of substitution.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statement 1 and statement 2 are true.
Option 4: Both statement 1 and statement 2 are false.
Question : Which of the following statement is correct? Statement 1:Primary Market promotes capital formation directly. Statement 2: Only buying of securities takes place in the Primary Market.
Question : Which of the following statement is correct? Statement 1: In the capital market transactions are made in the short term securities Statement 2: It is the nature of the capital market to established balance between the supply and the demand side.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile