1.

When the demanded goods quality is equal to the supplied good’s quantity,
then____.
A. when you see a shortage
B. when you see a surplus
C. when you see the government is investing in the market
D. none of these
Answer: (D) None of these

2. The shape of the demand curve is_____.

A. downward sloping
B. upward-sloping
C. vertical
D. horizontal
Answer: (A) downward sloping

3. When the restaurant that serves fast food increases in the number, this leads
to_____.
A. An increase in fast-food meal supply
B. the growth in fast-food meal demand
C. a growth is seen in the demand for substitutes for such meals
D. increase in the rate of such meals
Answer: (A) An increase in fast-food meal supply

4. Many of the supply curve____ due to increases in marginal cost.

A. is vertical
B. is horizontal
C. has a positive slope
D. has a negative slope
Answer: (C) has a positive slope

5. When one moves up with the supply curve, which one of these metrics is not a part
of the constant factor?
A. the seller numbers
B. the commodity prices
C. expected prices in the future
D. the resources cost that was used for commodity production
Answer: (B) the commodity prices

6. What will be the supply when the price change is by 1%, and the change in supply
is by 2%?
A. indeterminate
B. elastic
C. inelastic
D. static
Answer: (B) elastic

7. What will happen if the rate of complementary goods has a downfall or there’s
an increase in consumer income?
A. the products demand curve shifts towards the right
B. the products supply curve shifts toward the right
C. the products supply curve shifts toward the right
D. the products demand curve shifts towards the right
Answer: (D) the products demand curve shifts towards the right

8. While we draw the demand curve, which of these assumptions are there?
A. the substitute price should not change
B. the curve for demand should be linear
C. there should be no change in commodity price
D. the demanded quantity does not change
Answer: (a) the substitute price should not change

9. The relation of ______ is by the law of demand.

A. the quantity and price of commodity
B. the price and income of commodity
C. demand quantity and demand-supply of commodity
D. income and demand quantity of a commodity
Answer: (A) the quantity and price of a commodit3y

10. For the demand for durable goods, the elasticity is____.
A. zero
B. greater than the unity
C. equal to the unity
D. less than the unity
Answer: (B) greater than the unity

11. The demand elasticity turns out to be _____when the product price comes down
by 10% and the demand for the product goes up by 30%.
A. 3
B. 30
C. 13
D. d.10
Answer: (A) 3

12. The demand for commodity turns out to be ____ when the demanded quantity
of commodity does not respond to change in its prices.
A. inelastic
B. unit elastic
C. elastic
D. perfectly inelastic
Answer: (D) perfectly inelastic

13. Which one out of the mentioned options is not a cause of change or shift in
demand for any product?
A. when the substitute price is changed
B. when there is a change in product price
C. when a change in consumer income is seen
D. none of these
Answer: (B) when there is a change in the product price
14. When for a commodity, the elasticity of demand is low, the product______?
A. Is a necessity
B. is a luxury
C. is a little important in overall budget
D. none of these
Answer: (A) is a necessity

15. A price increase price will result in_____ when the product demand is
perfectly inelastic.
A. a rise in total income from a certain product
B. a downfall in the demanded quantity of product
C. no changes in total income from a certain product
D. a reduction in total income from a certain product
Answer: (A) a rise in total income from a certain product

16. When the total revenue from product and the price moves in the same direction,
then the demand is________.
A. elastic
B. perfectly elastic
C. unrelated
D. inelastic
Answer: (D) inelastic

17. The supply curve will be_____ when the supply elasticity is greater than one.
A. horizontal
B. vertical
C. touching y-axis
D. passing through the origin
Answer: (C) touching the y-axis

18. Can an increase in demand for certain products make the supply curve shift in
any direction?
A. the curve will move in the right direction
B. no effect on the supply
C. A change in the slope of a supply curve
D. the curve will move in the left direction
Answer: (B) no effect on the supply

19. We can see the upward slope of a firm supply curve due to____.
A. consumers see a positive relationship between the quantity and price
B. the production expansion leads to the use of inferior inputs
C. the cost of production of extra units of output will rise beyond a point
D. none of these
Answer: (C) the cost of production of extra units of output will rise beyond a point

20. Without changing the price_____ moves to a rise in commodity supply.

A. fall in the supply
B. decrease in the supply
C. the rise in the supply
D. expansion in the supply
Answer: (C) the rise in the supply

21. In a certain year, the workers experienced bad weather. If the rest of the
factors remain the same, the supply curve of that product will move in which
direction?
A. leftward
B. upward
C. rightward
D. none of these
Answer: (A) leftward

22. If the supply curve of the market moves to the right side, which of these will
explain the shift at best?
A. making a commodity production at low cost by introducing a new technique
B. increase in the raw material rate
C. government introducing a tax on that certain product
D. none of the above
Answer: (A) making a commodity production at low cost by introducing a new technique

23. Out of these scenarios, which one will not change the curve of demand for a
certain product?
A. when we see a reduction in the amount of raw material of that thing or product
B. when a study says, the product is not good for health
C. when we see another campaign for goods
D. change in consumers’ income
Answer: (A) when we see a reduction in the amount of raw material of that thing or product

24. Out of these scenarios, which won’t lead to a demand change for the product?
A. a switch in consumer taste
B. increase in consumer income
C. changes in the price
D. none of these
Answer: (D) None of these

25. In July 2012, a company was giving 6000kgs of flour at the market value of rupee
40 per kg. But in august 2012, the flour supply was reduced to 5500 kg at the
market value of rupee 30kg. This change in flour supply is_____.
A. less elastic
B. more elastic
C. perfectly elastic
D. perfectly inelastic
Answer: (A) less elastic

26. The demand curve that’s horizontal and parallel to the x-axis shows the elasticity
of demand to be____.
A. infinite
B. zero
C. greater than zero
D. equals to one
Answer: (A) infinite
27. Which of these doesn’t lead to a change in the demand curve?
A. advertisement
B. price of product
C. income
D. related product price
Answer: (b) price of the product

28. An increase in income in the countries that are developing leads the curve of
demand shift to _____.
A. up
B. down
C. left
D. right
Answer: (D) right

29. Coffee and tea are ____ types of goods.

A. complimentary
B. substitute
C. normal
D. inferior
Answer: (B) substitute

30. Tell the marginal revenue of a company that sells an item at a rate of rupee 20
and the elasticity rate of demand for that item is (-) 4.
A. 15
B. 19
C. 5
D. 30
Answer: (C) 5

31. Mention the responsible factor in demand for any natural resource?
A. increase in human population
B. scientific advancement
C. environmental pollution
D. use of biodegradable resources
Answer: (A) increase in the human population

32. Name a phenomenon in which the consumer tends to be exclusive and different
by asking for less commodity as many of the people consume the same.
A. substitution effect
B. price effect
C. bandwagon effect
D. snob effect
Answer: (D) snob effect

33. The elasticity for the demand of durable goods is __________.

a. Zero
b. Equal to unity
c. Greater than unity
d. Less than unity
Answer: c

34. Law of demand shows a relation between the ___________.

a. Quantity demand and quantity supply of a commodity
b. Income and quantity demand of a commodity
c. Price and quantity of a commodity
d. Income and price of a commodity
Answer: c

35. If the quantity demanded of a commodity is unresponsive to change in

prices, then the demand of that commodity is ________.
a. Perfectly inelastic
b. Elastic
c. Unit elastic
d. Inelastic
Answer: a
36. When the elasticity of demand for a commodity is very low, it shows
that the product ________.
a. Has little importance in the total budget
b. Is a luxury
c. Is a necessity
d. None of the above
Answer: c

37. Which of the following is not a cause of the shift in demand for a
product?
a. Change in the price of substitutes
b. Change in the income of a consumer
c. Change in the price of a product
d. None of the above
Answer: c

38. When the demand for a product is perfectly inelastic, a price increase
will result in __________.
a. A decrease in quantity demanded of the product
b. No change in the total income from a product
c. An increase in the total income from a product
d. A reduction in the total income from a product
Answer: c

39. An example of a product with inelastic demand is

a. Luxury cars
b. Bottled water
c. Smart phones
d. Airline tickets
e. None of the above
Answer: b. Bottled water

40. Which of the following is an example of complementary goods

a. Different brands of tooth paste
b. computers and computer software
c. tea and coffee
d. ink and ball pen
e. none of the above
Answer : b. computers and computer software

41. The percentage change in demand of Pepsi divided by the percentage change in
demand of Coca-cola indicates the degree of
a. Price elasticity of demand
b. Cross elasticity of demand
c. Income elasticity of demand
d. More than one of the above
e. None of the above
Answer : b. Cross elasticity of demand

42. The rise of income in developing countries would lead the demand curve to shift :
a. right
b. down
c. up
d. left
Answer : a. right

43. Which of the following factors does not lead to a shift in the demand curve?
a. Income
b. Advertisement
c. Price of related goods
d. Price of the product
Answer :d. Price of the product

44. The given demand curve has

 a. Infinite slope and zero elasticity
b. Zero slope and infinite elasticity
c. ‘zero slope and unit elasticity
d. Zero slope and zero elasticity

44. Which of the four graphs represents the market for peanut butter after a major hurricane
hits the peanut-growing south?
a. A
b. B
c. C
d. D
Answer : d. D

45. Which of the four graphs represents the market for winter boots in June?
a. A
b. B
c. C
d. D
Answer : b. B

46. Which of the four graphs represents the market for pizza delivery in a college town in
September?
a. A
b. B
c. C
d. D
Answer : a. A

47. Which of the four graphs represents the market for cars after new technology was
installed on assembly lines?
a. A
b. B
c. C
d. D
Answer : c. C

48. Graph A shows which of the following?

a. an increase in demand
b. an increase in quantity demanded
c. an increase in quantity supplied
d. Both (a) and (c) are correct.
Answer : d. Both (a) and (c) are correct

49. Graph C shows which of the following?

a. an increase in demand
b. an increase in quantity demanded
c. an increase in supply
d. Both b and c are correct.
Answer : d. Both b and c are correct.

50. Which of the four graphs shown illustrates an increase in quantity supplied?
a. A.
b. B.
c. C.
d. D.
Answer : a. A
51. 8. Which of the four graphs shown illustrates a decrease in quantity demanded?
a. A.
b. B.
c. C.
d. D.
Answer : d. D.