The law of demand is given by
Prof. Marshall
Adam Smith
Prof. Walker
J.B. Say
Increase in the price of ink will ________ the demand of pen.
Increase
Decrease
Keep constant
No effect
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
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
Change in the demand due to increase in the income of the consumers is known as ________ of demand.
Extension
Contraction
The law of demand implies that demand curves
Slope Up
Slope Down
Shift up whenever the price rises
Shift down whenever the price rises
A decline in the price of a good cause producers to reduce the quantity of the good they are willing to produce. This fact illustrates.
The law of demand
The law of supply
A change in supply
The nature of an inferior good
What kind of relationship exist between income and demand of inferior good?
Direct
Inverse
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
The father of modern economics is :
Prof. Ragnar
Kenneth Boulding
Prof.Walker
