Question : EXCEPT for the one, the following are the causes of a shift in demand: A: Change in income B: Change in price C: Change in prices of substitutes D: Change in fashion
Option 1: B only
Option 2: B and C only
Option 3: A, B, and C only
Option 4: A, B, C, and D
Correct Answer: B only
Solution : Except for price changes, the following are the causes of a shift in demand. A shift in the demand curve occurs when a demand determinant other than price changes. A shift to the left reduces demand, and vice versa. Hence option a is the correct answer.
Question : Which of the following is an assumption made while drawing the demand curve a:The demand curve must be linear b:The price of substitutes should not change c: The quantity demanded should not change d: The price of the commodity should not
Question : When a good's demand is less elastic, a) Price change as a percentage of demand as a percentage of price change b) Change in the amount demanded as a percentage of price change c) Price change by percentage equals demand by percentage changed d)
Question : Which of the following factors affects demand elasticity at prices? a) The commodity's nature a) Income status c) The availability of alternatives
Question : Which of the following is the assumption of the law of demand? A: The commodity's price should not change. B: The quantity requested should not change. C: Substitute prices should not change.
Question : ______________- shows the change in price levels between two different time periods.
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