Demand analysis
1. The demand for ___________ is
highly inelastic.
perfumes
gold
medicines
diamond
2. The demand for salt is
__________
elastic
inelastic
zero
maximum
3. The elasticity of demand of pins is
___________
elastic
inelastic
zero
maximum
4. A desire backed by ability to
pay and willingness to pay for a commodity is called.
supply
purchasing power
perfect desire
demand
5. When the price of petrol goes
up, demand of car will _____________
rise
fall
becomes zero
remain unchanged
6. Individual demand is an
aggregate of purchasing by ____________ buyer(s).
all
some
one
two
7. Market demand is an aggregate of
purchasing by ___________ buyer(s).
one
two
all
some
8. Implicit demand is also known as
______________
derived
direct
composite
joint
9. Indirect demand is also known as
___________ demand.
direct
composite
joint
derived.
10. The demand for consumer goods
is _____________ demand
derived
implicit
direct
indirect
11. The law of demand is applicable
to __________________ goods.
Giffen
prestige
inferior
normal
12. When less is purchased at the
constant prices, it is called _____________ in demand.
decrease
increase
expansion
contraction
13. When price of commodity rises,
the demand for it ______________
falls
remains constant
becomes negative
becomes positive
14. Income elasticity of demand for
inferior goods is ______________
positive
negative
zero
greater than one
15. The slope of demand curve is
__________ in the case of inelastic demand.
flatter
steeper
horizontal
vertical
16. Cross elasticity of demand is
applicable to ________________ goods.
prestige
substitute
inferior
superior
17. Perfectly elastic demand curve
is _____________
horizontal
to OX – axis
Horizontal to OY – axis
Passes through the origin.
Steeper
18. If a commodity has many
substitutes, then its demand becomes __________
more elastic
less elastic
unitary elastic
perfectly elastic.
19. As price falls, demand
___________
increases
decreases
contracts
expands.
20. The Law of demand is based on
the law of ______________
supply
Diminishing
Marginal Utility
Newton's Law of gravitational force
Einstein's E = mc2 .
21. In the case of Giffen goods the
income elasticity of demand is _____________
positive
negative
zero
infinite
22. In case of normal goods the
income elasticity of demand is ____________
positive
negative
zero
infinite
