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
As consumer has more and more units of a goods, its marginal utility to him
Rises
Is zero
Declines
Is maximum
Income effect states that as price of a good falls, demand rises because there is rises in
Money Income
Real Income
Relative price of other goods
Marginal Utility
Which of the following will shift the supply curve for good X left ward?
A situation in which quantity demanded exceeds quantity supplied
An increase in the cost of machinery used to produce X
A technological improvement in the production X
A decrease in the wages of workers employed to produce X
Change in the demand of apples due to increase in the price is ________ of demand.
Contraction
Extension
Increase
Decrease
Most goods
Are complement to each other
Are normal goods
Have vertical demand curves
Have vertical supply curves
Increase in the demand for wages due to industrial development is an example of
Income demand
Cross demand
Derived demand
Competitive demand
Change in the demand due to increase in the income of the consumers is known as ________ of demand.
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
