How is law of demand expressed functionally?
Dx = f (P2) , ceteris paribus
Dx = f (Px) , ceteris paribus
Dx = f (y) , ceteris paribus
Dx = f (T) , ceteris paribus
Each point on the demand curve reflects
All the wants of a given household
The highest price consumers are willing to pay for an additional unit of a good
The highest price sellers will accept for all units over time
The lowest cost technology available to produce a good
What kind of relationship exist between price of a good and demand of its complementary good?
Direct
Inverse
No effect
Can be direct or inverse
As consumer has more and more units of a goods, its marginal utility to him
Rises
Is zero
Declines
Is maximum
Increase in the price of ink will ________ the demand of pen.
Increase
Decrease
Keep constant
Most goods
Are complement to each other
Are normal goods
Have vertical demand curves
Have vertical supply curves
When demand decreases
Price falls and Quantity decreases
Price falls and Quantity increases
Price rises and Quantity decreases
Price rises and Quantity increases
In the above figure, if D2 is the original demand curve for a normal good which price and quantity will result if incomes fall?
Point a , with price P2 and quantity Q2
Point b, with price P1 and quantity Q1
Point C, with price P3 and quantity Q3
Point d, with price P1 and quantity Q3
The father of modern economics is :
Prof. Ragnar
Adam Smith
Kenneth Boulding
Prof.Walker
Change in the demand of apples due to increase in the price is ________ of demand.
Contraction
Extension
