Supply and Demand AFCAT Questions

AFCAT Indian Economy

Supply and Demand MCQ Questions


1.
Demand curve shows the relationship between
A.
Price and quantity demanded
B.
Price and supply
C.
Income and quantity demanded
D.
Quantity and price
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ANSWER :
A. Price and quantity demanded
2.
The law of demand states that, ceteris paribus, as price increases, the quantity demanded ____.
A.
Becomes elastic
B.
Increases
C.
Remains constant
D.
Decreases
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ANSWER :
D. Decreases
3.
In a perfectly competitive market, demand is considered elastic when
A.
There is no effect on price
B.
The price and quantity move together
C.
The quantity demanded remains constant
D.
A small change in price leads to a large change in quantity demanded
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ANSWER :
D. A small change in price leads to a large change in quantity demanded
4.
Which of the following shifts the demand curve to the right?
A.
Increase in price of complementary goods
B.
Decrease in population
C.
Increase in income
D.
None of the above
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ANSWER :
C. Increase in income
5.
The demand curve typically slopes
A.
Upwards from left to right
B.
Downwards from left to right
C.
Horizontally
D.
Vertically
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ANSWER :
B. Downwards from left to right
6.
What happens to the demand curve when there is a decrease in consumer income?
A.
It remains unchanged
B.
It shifts right
C.
It becomes steeper
D.
It shifts left
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ANSWER :
D. It shifts left