MCQ Chapter 3A Economics Class 12 Maharashtra Board Demand Analysis 1. What is an exception to the law of demand involving inferior goods?Price illusionGiffen’s paradoxPrestige goodsHabitual goodsQuestion 1 of 202. Why do rich people buy more prestige goods when prices rise?Due to ignoranceBecause they are status symbolsDue to speculationBecause they are necessitiesQuestion 2 of 203. What is speculation as an exception to the law of demand?Buying less when prices riseBuying more when prices rise expecting further increasesBuying more when prices fallBuying due to habitsQuestion 3 of 204. What is price illusion in the context of demand?Consumers think low-priced goods are betterConsumers think high-priced goods are of better qualityConsumers ignore pricesConsumers buy due to habitsQuestion 4 of 205. Why might consumers buy more of a commodity at a high price due to ignorance?They expect prices to fallThey are unaware of lower prices elsewhereThey think it is a necessityThey consider it a prestige goodQuestion 5 of 206. What is an example of habitual goods as an exception to the law of demand?DiamondsTeaBranded productsOil before DiwaliQuestion 6 of 207. What is expansion of demand?A fall in demand due to a rise in priceA rise in demand due to a fall in priceA change in demand due to incomeA shift in the demand curveQuestion 7 of 208. What is contraction of demand?A rise in demand due to a fall in priceA fall in demand due to a rise in priceA shift in the demand curveA change in demand due to tastesQuestion 8 of 209. How does expansion of demand appear on a demand curve?A shift to the rightA shift to the leftA downward movement on the same curveAn upward movement on the same curveQuestion 9 of 2010. How does contraction of demand appear on a demand curve?A shift to the rightA shift to the leftA downward movement on the same curveAn upward movement on the same curveQuestion 10 of 2011. What causes an increase in demand?A fall in priceFavorable changes in factors like tastes or incomeA rise in priceA decrease in populationQuestion 11 of 2012. What causes a decrease in demand?A rise in priceUnfavorable changes in factors like tastes or incomeA fall in priceAn increase in populationQuestion 12 of 2013. How is an increase in demand represented on a graph?A downward movement on the same curveAn upward movement on the same curveA rightward shift of the demand curveA leftward shift of the demand curveQuestion 13 of 2014. How is a decrease in demand represented on a graph?A downward movement on the same curveAn upward movement on the same curveA rightward shift of the demand curveA leftward shift of the demand curveQuestion 14 of 2015. What is the relationship between demand for a good and the price of its substitute?DirectInverseNo effectCan be direct or inverseQuestion 15 of 2016. What is the relationship between income and demand for inferior goods?DirectInverseNo effectCan be direct or inverseQuestion 16 of 2017. When less units are demanded at a high price, what is it called?Increase in demandExpansion of demandDecrease in demandContraction in demandQuestion 17 of 2018. What is a situation where more quantity is demanded at a lower price called?Contraction of demandExpansion of demandIncrease in demandDecrease in demandQuestion 18 of 2019. What is a commodity that can be put to several uses called?Direct demandIndirect demandComposite demandCompetitive demandQuestion 19 of 2020. What is a desire backed by willingness to purchase and ability to pay called?UtilityDemandNeedWantQuestion 20 of 20 Loading...
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