Supply and Demand AFCAT Questions

AFCAT Indian Economy

Supply and Demand MCQ Questions


13.
Fill in the blank: If the price of a complementary good increases, the demand for the original good will ____.
A.
Decrease
B.
Increase
C.
Remain constant
D.
Become elastic
😑 View Answer Rough Work Error
ANSWER :
A. Decrease
14.
In the case of a shortage, the price tends to ____.
A.
Rise
B.
Fall
C.
Remain unchanged
D.
Increase initially, then fall
😑 View Answer Rough Work Error
ANSWER :
A. Rise
15.
Which of the following is an example of a change in quantity demanded?
A.
A price decrease leads to more quantity demanded
B.
An increase in income
C.
A change in consumer preferences
D.
A technological breakthrough
😑 View Answer Rough Work Error
ANSWER :
A. A price decrease leads to more quantity demanded
16.
Which of the following would cause a decrease in the quantity supplied?
A.
A technological improvement
B.
An increase in income
C.
A decrease in price
D.
A decrease in the cost of production
😑 View Answer Rough Work Error
ANSWER :
C. A decrease in price
17.
In the case of an increase in demand with no change in supply, the equilibrium price will ____.
A.
Remain unchanged
B.
Decrease
C.
Increase
D.
Be more elastic
😑 View Answer Rough Work Error
ANSWER :
C. Increase
18.
The income effect of a price change refers to the change in demand due to a change in ____.
A.
Number of consumers
B.
Price of related goods
C.
Consumers' purchasing power
D.
Availability of substitutes
😑 View Answer Rough Work Error
ANSWER :
C. Consumers' purchasing power