Questions on Demand and Supply

Let’s look at some multiple choice questions which are based on the concept of demand and supply in economics –

Q.1 When demand for good increases whether price for good

A) Rises

B) Falls

C) Remains Unchanged

D) None of the above

Correct answer is Option A

Q.2 What will be the consequence of rise in price of good on demand and supply for that good other things remaining constant

A) Demand will increase and supply will fall

B) Demand will decrease and supply will increase

C) Demand and supply will remain unchanged

D) None of the above

Correct answer is Option B

Q 3 Which of the following statements is true about demand and supply curve

I) Demand curve is downward sloping

II) Supply curve is upward sloping

III) Demand curve is upward sloping

IIII) Supply curve is downward sloping

A) Only I is correct

B) Both I and II are correct

C) Both III and IIII are correct

D) Only III is correct

Correct answer is Option B

Q 4 According to law of demand price and demand for a good are

A) Positively related

B) Inversely related

C) No relation

D) Positive for inferior goods and inversely for normal goods

Correct answer is Option D

Q 5 At equilibrium price for a good which of the following situation happens

A) Quantity demanded for a good is more than quantity supplied

B) Quantity Supplied for a good is more than quantity demanded

C) Demand and supply for the good are equal

D) Price can never be at equilibrium

Correct answer is Option C

0 comments… add one

Leave a Comment


Related pages


skimming marketinfosys kpoadvantages and disadvantages of invoice discountingdurable and nondurable goods exampleshow to calculate national income by expenditure methodtypes of financial marketthe scope of macroeconomicswhat is implicit and explicit costwhat is an unearned revenuesocialism mixed economysystematic & unsystematic riskdifference between consignee and consignora trial balance is prepared toprepaid insurance journal entrywhat is fictitious assetsdirect quotation to indirect quotationhindi meaning of compensatesystematic risk and unsystematic risk pdfa study of non operating expenses of proprietary concernadvantages of dematerializationexamples of conglomerate diversificationexample of horizontal diversificationdifference between complimentary and complementarycost push inflationadvantages of urbanisationskimming pricing examplestrengths and weaknesses of traditional economymeaning of operating cycleadvantages of capitalismadvantages of decentralisationsubsidiaries of appledefine normal good in economicswhat is the meaning of consigneeadvantages and disadvantages of inventorydiversifiable risk refers to riskvertical analysis of a balance sheetoutstanding rent journal entryadvantages and disadvantages of zero based budgetingwhat are the advantages of autocratic leadershipmonopolistic competitionscapital account convertibility pptunclaimed dividendscontingent liabilities examplesfactors influencing income elasticity of demanddisadvantage of jitmarket skimming pricing examplehow to record unearned revenuesubstitute goods in economicsexpenses meaning in hindiretail banking vs wholesale bankingformula of profitability ratioforex reserves meaningpurchase bill discountingfor a monopolistic competitorconglomerate definition economicswhat is an autocratic leadershipoligopoly monopolydrawbacks of advertisementdisadvantages of mergertypes of elasticitiesdifference between perfect competition and oligopolynormal good vs inferior goodmeaning of fluctuate in hindiadvantages of paybackhow to calculate crr and slradjusting entries for unearned revenuedefine marginal costingsecuritizing receivablesdifference between direct and indirect tax with examplesdisadvantages of hedge fundsdisadvantages of deflationsecuritizing accounts receivableservices rendered accounting entry