Question : Which of the statement is true?
A: The demand curve slopes downward because consumers are willing to pay less and less for each additional unit consumed because they receive less value from doing so.
B: With a fall in the price of a good, consumers’ purchasing power increases. So, he/she consumes more units.

Option 1: Only A correct

Option 2: Only B correct

Option 3: Both are correct

Option 4: Both are false

Question : Assertion: The demand curve slopes downward because consumers are ready to pay less and less for each successive unit consumed since they receive less value from doing so.
Reason: The purchasing power of consumers rises when a product's price drops. He or she uses more units as a result.

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 : Because of the following, an individual demand curve slopes downward to the right:
A: The application of the law of diminishing marginal utility
B: The substitution effect of a price decrease
C: Income impact of price decrease

Option 1: Only A correct

Option 2: Only B correct

Option 3: Only B and C correct

Option 4: A, B and C all are correct

Question : How does the demand curve look?

Option 1: Slopes upward from left to right

Option 2: Slopes downward from left to right

Option 3: Slopes downward from right to left

Option 4: None 

Question : The aggregate demand curve slopes downward because of the:

Option 1: Wealth effect
 

Option 2: Interest rate effect
 

Option 3: Foreign trade effect

Option 4: All of the above

Question : If the quantity of good A required increases as the price of good B rises, then
A)  A and B are substitutes.
B)  A and B are complements.

Option 1: Only A correct

Option 2: Only B correct 

Option 3: Both are correct

Option 4: None of the above.