Important Questions on Law of Demand (Economics) for all Competitive Exams

Important Questions on Law of Demand (Economics)

Important Questions on Law of Demand (Economics) /Top Ten question on Law of Demand (Economics) / MCQ’s on Law of Demand (Economics) / Questions asked in previous year exams on Law of Demand (Economics)

Important Questions on Law of Demand (Economics)

Important Questions on Law of Demand (Economics) : ‘Law of Demand’ is one of the main topics in the Economics subject and it is a utmost importance for all those candidates who are preparing for the Government Competitive Exams like UPSC, IAS, PSC, NDA, SSC, CTET/ PSPET/ PTET etc.

Law of Demand (Economics) :Law of demand states that people will buy more at lower prices and buy less at higher prices, other things remaining the same. For Example there should be no change in the price of related goods, income, tastes & preferences of consumers etc. According to the law, there is an inverse relationship between Price and demand for a commodity. But this law has some exceptions as it is not applicable to Veblen goods, giffen goods etc. Some of the determinants of this law are income, tastes, habits, price of other goods, expectations of future etc.

Important Questions on Law of Demand (Economics)

1. The term demand in economics means:
(a) Desire for a good
(b) Ability to buy
(c) Desire & ability to buy
(d) None of these

2. There is an ______ relationship between price and demand of a commodity.
(a) Direct
(b) Inverse
(c) Constant
(d) Vertical

3. Exceptions of law of demand are ………………… .
(a) Giffen goods
(b) Luxury goods
(c) Both (a)and (b)
(d) None of these

4. Those Goods whose demand falls when their price falls are known as :
(a) Distinct Goods
(b) Giffen Goods
(c) Normal Goods
(d) All of the above

5. Coke & Pepsi are the examples of ________ .
(a) Complementary Goods
(b) Substitute Goods
(c) Veblen Goods
(d) None of these

Important Questions on Law of Demand (Economics)

6. Change in Qt. demanded due to change in price alone is called.
(a) Increase/ decrease in demand
(b) Extension / Contraction in demand
(c) No change in demand
(d) Infinite change in demand

7. Change in demand due to change in tastes, preferences, income of consumer etc. is called….
(a) Increase/ Decrease in demand
(b) Extension / Contraction in demand
(c) Constant change in demand
(d) Horizontal change in demand

8. A table that shows different prices of a good & quantity of that good demanded at each of these prices is called……
(a) Demand curve
(b) Demand log
(c) Demand schedule
(d) None of these.

9. Determinants of demand are:
(a) Size of population
(b) Tastes and habits of population
(c) Income of consumer
(d) All of the above

10. Exceptions to the law of demand have:
(a) Negative slope of demand curve
(b) Positive slope of demand curve
(c) Variable slope of demand curve
(d) Constant slope of demand curve

 

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1. c
2. b
3. c
4. b
5. b
6. b
7. a
8. c
9. d
10. b

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