The Demand Theory is associated with the name of
J. M. Keynes
David Ricardo
Alfred Marshall
Samuelson
The degree of responsiveness of demand for a commodity to a change in its price is called
Elasticity of demand
Increase in demand
Expansion of demand
Decrease in demand
Law of demand implies
Direct relationship between demand and price
Inverse relationship between demand and price
Direct relationship between demand and supply
Indirect relationship demand and price
If a demand curve is a straight line parallel to y-axis it shows
More elastic demand
Less elastic demand
Perfectly inelastic demand
Perfectly elastic demand
A slight change in price causing on infinite change in demand is a situation of
Unit elastic demand
In a market economy a central problems are settled by
Private sector
Central planning authority
Price mechanism
Demand theory
Demand varies
Positively with price
Not with price
Inversly with price
Negatively sloped
The demand for a commodity is always
At its cost
At its price
At its size
At its demand
Which of the following pairs of commodities is an example of substitutes?
Car and petrol
Paper and pen
Coffee and tea
None of these
Elasticity of demand will be less in the case of households having
High income
Low income
Very low income
Very high income
