The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat

The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat
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(3) Salt Explanation: For certain goods called necessities, demand is not related to income. Demand for salt does not increase with the increase in income & does not decrease with the decrease in income. It means that it is irrespective of income. The demand curve slopes downward for goods like salt, but it is inelastic.
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The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat

Description : The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat

Last Answer : Salt

A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Description : A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Last Answer : (2) decreases the price of that commodity Explanation: The four basic laws of supply and demand are: (1) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher ... (4) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.

A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity

Description : A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity

Last Answer : decreases the price of that commodity

The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Description : The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Last Answer : (4) increase in demand accompanied by a decrease in supply. Explanation: Price of a commodity is always determined by the forces of demand and supply in the market. The price at which ... equilibrium price definitely increases when there is an increase in demand combined with the decrease in supply.

The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Description : The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Last Answer : increase in demand accompanied by a decrease in supply.

Other things being equal, a decrease in quantity demanded of a commodity can be caused by – (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by – (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Last Answer : (1) a rise in the price of the commodity Explanation: In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.

Other things being equal, a decrease in quantity demanded of a commodity can be caused by (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Last Answer : a rise in the price of the commodity

When the price of a commodity falls, we can expect - (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Description : When the price of a commodity falls, we can expect - (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Last Answer : (4) the demand for it to increase Explanation: In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its ... of good demanded by the consumer will be negatively correlated to the change in the price of the good

When the price of a commodity falls, we can expect (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Description : When the price of a commodity falls, we can expect (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Last Answer : the demand for it to increase

According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or fall in demand c) at a certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above

Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above

Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand

Elasticity of demand is the degree of responsiveness of demand of a commodity to a - (1) change in consumers' wealth (2) change in the price of substitutes (3) change in consumers' tastes (4) change in its price

Description : Elasticity of demand is the degree of responsiveness of demand of a commodity to a - (1) change in consumers' wealth (2) change in the price of substitutes (3) change in consumers' tastes (4) change in its price

Last Answer : (4) change in its price Explanation: The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of demand to change in price. Its measure depends upon comparing ... demand is the ratio of percentage change in amount demanded to a percent-age change in price.

The Law of Demand expresses - (1) effect of change in price of a commodity on its demand (2) effect of change in demand of a commodity on its price (3) effect of change in demand of a commodity over the supply of its substitute (4) (4) None of the above

Description : The Law of Demand expresses - (1) effect of change in price of a commodity on its demand (2) effect of change in demand of a commodity on its price (3) effect of change in demand of a commodity over the supply of its substitute (4) (4) None of the above

Last Answer : (1) effect of change in price of a commodity on its demand Explanation: The law of demand states the inverse relation that comes to exist of between price in one hand and quantity demanded on ... quantity demanded. In other words, the higher the price of a product, the lower the quantity demanded.

)When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

Description : )When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

Last Answer : (2) Inelastic Explanation: When the percentage change in quantity demanded is less than the percentage change in price, then the demand for the commodity is said to be inelastic. Price elasticity of demand refers to the degree of responsiveness of quantity demanded to change in price.

Elasticity of demand is the degree of responsiveness of demand of a commodity to a (1) change in consumers’ wealth (2) change in the price of substitutes (3) change in consumers’ tastes (4) change in its price

Description : Elasticity of demand is the degree of responsiveness of demand of a commodity to a (1) change in consumers’ wealth (2) change in the price of substitutes (3) change in consumers’ tastes (4) change in its price 

Last Answer : change in its price

When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

Description : When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

Last Answer : Inelastic

The Law of Demand expresses (1) effect of change in price of a commodity on its demand (2) effect of change in demand of a commodity on its price (3) effect of change in demand of a commodity over the supply of its substitute (4) None of the above

Description : The Law of Demand expresses (1) effect of change in price of a commodity on its demand (2) effect of change in demand of a commodity on its price (3) effect of change in demand of a commodity over the supply of its substitute (4) None of the above

Last Answer : effect of change in price of a commodity on its demand

When price of a substitute of commodity falls, the demand for - (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Description : When price of a substitute of commodity falls, the demand for - (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Last Answer : (1) falls Explanation: Cross Price Effect refers to effect on the demand for a given commodity due to a change in the price of a substitute commodity. A change (increase or decrease) in the ... the given commodity (tea) also decreases. It shifts the demand curve of the given commodity towards left.

A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes

Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes

Last Answer : (4) When only price of the commodity changes Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that ... only when there is a change in other determinants of demand, other than price of the commodity.

'Law of demand' implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Description : 'Law of demand' implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Last Answer : (3) price of the commodity rises Explanation: The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. That is, if ... of the commodity the price starts rising and it continues to rise till equilibrium price is reached.

If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is - (1) perfectly inelastic (2) elastic (3) perfectly elastic (4) inelastic

Description : If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is - (1) perfectly inelastic (2) elastic (3) perfectly elastic (4) inelastic

Last Answer : (3) perfectly elastic Explanation: If quantity demanded changes by a very large percentage as a result of a tiny percentage change in price, then the demand is said to be perfectly elastic ... in this extreme case would be undefined but it approaches negative infinity as demand becomes more elastic.

The relationship between price of a commodity and the demand for it - (1) is a positive relationship (2) is an inverse relationship (3) They are independent of each other (4) They do not have any relationship

Description : The relationship between price of a commodity and the demand for it - (1) is a positive relationship (2) is an inverse relationship (3) They are independent of each other (4) They do not have any relationship

Last Answer : (2) is an inverse relationship Explanation: According to the Law of demand, consumers buy more of a good when its price is lower and less when its price is higher. It states that the quantity demanded and the prices of a commodity are inversely related, other things remaining constant.

Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Description : Price elasticity of demand shows the relationship between demand for a commodity and (a) price of other commodities (b) price of that commodity © tastes and preferences of the consumer (d) income of the consumer

Last Answer : (b) price of that commodity

When price of a substitute of commodity ‘x’ falls, the demand for ‘x’ : (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Description : When price of a substitute of commodity ‘x’ falls, the demand for ‘x’ : (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Last Answer : falls

A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes

Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes

Last Answer : When only price of the commodity changes

If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is (1) perfectly inelastic (2) elastic (3) perlectly elastic (4) inelastic

Description : If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is (1) perfectly inelastic (2) elastic (3) perlectly elastic (4) inelastic

Last Answer : perlectly elastic

The relationship between price of a commodity and the demand for it (1) is a positive relationship (2) is an inverse relationship (3) They are independent of each other (4) They do not have any relationship

Description : The relationship between price of a commodity and the demand for it (1) is a positive relationship (2) is an inverse relationship (3) They are independent of each other (4) They do not have any relationship

Last Answer :  is an inverse relationship

‘Law of demand’ implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Description : ‘Law of demand’ implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Last Answer :  price of the commodity rises

Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product and employment (3) a rise in real gross National product and investment (4) a rise in prices of output and resources

Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.

According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and employment (3) a rise in real gross National product and investment (4) a rise in prices of output and resources

Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer :  a fall in prices of output and resources

For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls

Description : For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls

Last Answer : (2) income rise Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good. ... opposite is observed. Normal goods are those for which consumers' demand increases when their income increases.

For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls

Description : For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls

Last Answer : income rise

Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above

Description : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above

Last Answer : a) Price rise

)The demand of a commodity is a direct demand but the demand of a factor of production is called a - (1) Crossed demand (2) Joint demand (3) Derived demand (4) Independent demand

Description : )The demand of a commodity is a direct demand but the demand of a factor of production is called a - (1) Crossed demand (2) Joint demand (3) Derived demand (4) Independent demand

Last Answer : (3) Derived demand Explanation: In the words of McConnell, the demand for factors of production is a derived demand that is derived from the finished goods and services which resources help to produce. ... demand, demand for factors is derived demand. It is based on the productivity of the factors.

The market equilibrium for a commodity is determined by : (1) The market supply of the commodity. (2) The balancing of the forces of demand and supply for the commodity (3) (3) The intervention of the Government. (4) (4) The market demand of the commodity.

Description : The market equilibrium for a commodity is determined by : (1) The market supply of the commodity. (2) The balancing of the forces of demand and supply for the commodity (3) (3) The intervention of the Government. (4) (4) The market demand of the commodity.

Last Answer : (2) The balancing of the forces of demand and supply for the commodity Explanation: Market Equilibrium is determined when the quantity demanded of a commodity becomes equal to the quantity ... equilibrium is known as equilibrium price and the corresponding quantity is known as equilibrium quantity.

Demand of commodity mainly depends upon - (1) Purchasing will (2) Purchasing power (3) Tax policy (4) Advertisement

Description : Demand of commodity mainly depends upon - (1) Purchasing will (2) Purchasing power (3) Tax policy (4) Advertisement

Last Answer : (2) Purchasing power Explanation: The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.

The income elasticity of demand being greater than one, the commodity must be - (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Description : The income elasticity of demand being greater than one, the commodity must be - (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Last Answer : (2) a luxury Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good, ceteris paribus. It is ... If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

The demand of a commodity is a direct demand but the demand of a factor of production is called a (1) Crossed demand (2) Joint demand (3) Derived demand (4) Independent demand

Description : The demand of a commodity is a direct demand but the demand of a factor of production is called a (1) Crossed demand (2) Joint demand (3) Derived demand (4) Independent demand

Last Answer : Derived demand

The market equilibrium for a commodity is determined by: (1) The market supply of the commodity. (2) The balancing of the forces of demand and supply for the commodity (3) The intervention of the Government. (4) The market demand of the commodity.

Description : The market equilibrium for a commodity is determined by: (1) The market supply of the commodity. (2) The balancing of the forces of demand and supply for the commodity (3) The intervention of the Government. (4) The market demand of the commodity.

Last Answer : The balancing of the forces of demand and supply for the commodity

Demand of commodity mainly depends upon– (1) Purchasing will (2) Purchasing power (3) Tax policy (4) Advertisement

Description : Demand of commodity mainly depends upon– (1) Purchasing will (2) Purchasing power (3) Tax policy (4) Advertisement

Last Answer : Purchasing power

The income elasticity of demand being greater than one, the commodity must be (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Description : The income elasticity of demand being greater than one, the commodity must be (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Last Answer : a luxury

Which of the following is true about the way by which SDG&E has been regulated by the PUC? a. SDG&E has been allowed to earn very high economic profits b. The profits of SDG&E are calculated as a percent of the value of the capital goods c. When the demand for electricity would fall, the price of electricity would also fall d. All of the above

Description : Which of the following is true about the way by which SDG&E has been regulated by the PUC? a. SDG&E has been allowed to earn very high economic profits b. The profits of SDG&E are calculated as ... the demand for electricity would fall, the price of electricity would also fall d. All of the above

Last Answer : b. The profits of SDG&E are calculated as a percent of the value of the capital goods

…….. is the price at which demand for a commodity is equal to its supply (a) Normal price ; (b) Equilibrium price ; (c) Short run price ; (d) Secular price

Description : …….. is the price at which demand for a commodity is equal to its supply (a) Normal price ; (b) Equilibrium price ; (c) Short run price ; (d) Secular price

Last Answer : ; (b) Equilibrium price ;

Market where the price of a commodity is determined by free play of the forces of supply and demand is called?

Description : Market where the price of a commodity is determined by free play of the forces of supply and demand is called?

Last Answer : Free Market.

Market demand curve for a commodity is a (a) Horizontal summation of all the individual demand curve for that product (b) Summation of demand curve of competitive products (c) Demand curve of average demand and price of previous six months (d) Projected demand schedule for next three months

Description : Market demand curve for a commodity is a (a) Horizontal summation of all the individual demand curve for that product (b) Summation of demand curve of competitive products (c) Demand curve of average demand and price of previous six months (d) Projected demand schedule for next three months

Last Answer : (a) Horizontal summation of all the individual demand curve for that product 

Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits

Description : Price elasticity of demand is not affected by (a) Nature of the commodity ; (b) Availability of close substitute; (c) Cost of production ; (d) Consumption habits

Last Answer : (c) Cost of production ;

What do you mean by demand of a commodity? a) A desire for the commodity b) Need for the commodity c) Quantity demanded of that commodity d) Quantity of the commodity demanded at a certain price during any particular period of time

Description : What do you mean by demand of a commodity? a) A desire for the commodity b) Need for the commodity c) Quantity demanded of that commodity d) Quantity of the commodity demanded at a certain price during any particular period of time

Last Answer : Answer- d

The relation that the law of demand defines is. a) Income and price of a commodity b) Price and quantity of a commodity c) Income and quantity demanded d) Quantity demanded and quantity supplied

Description : The relation that the law of demand defines is. a) Income and price of a commodity b) Price and quantity of a commodity c) Income and quantity demanded d) Quantity demanded and quantity supplied

Last Answer : Answer- b

The animal that do not develop hypertension in spite of heavy intake of salt is: (1) Sheep (2) Buffalo (3) Tiger (4) Camel

Description : The animal that do not develop hypertension in spite of heavy intake of salt is: (1) Sheep (2) Buffalo (3) Tiger (4) Camel

Last Answer : (4) Camel Explanation: The daily salt intake of camels is eight times that of a typical cow or sheep. Yet, surprisingly, they do not develop high blood pressure. Similarly, their blood sugar levels are twice those of other cud-chewing animals: still they do not develop diabetes.

The value of a commodity expressed in terms of money is known as - (1) Price (2) Utility (3) Value (4) Wealth

Description : The value of a commodity expressed in terms of money is known as - (1) Price (2) Utility (3) Value (4) Wealth

Last Answer : (1) Price Explanation: The exchange value of every commodity can be expressed in terms of money. This possibility has enabled money to become a medium for expressing values when the growing elaboration of ... . Thus, price can be defined as exchange value of a commodity expressed in terms of money.

The term 'Dumping' refers to - (1) The sale of a substandard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty

Description : The term 'Dumping' refers to - (1) The sale of a substandard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty

Last Answer : (2) Sale in a foreign market of a commodity at a price below marginal cost Explanation: Dumping is an international price discrimination in which an exporter firm sells a portion of its out-put in ... , incurring loss in the foreign market (International Economics by M. Maria. John Kennedy, p.122).