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All questions of Elementary Theory of Demand for Class 10 Exam
Which factor would likely shift the demand curve to the right?- a) A rise in the price of complementary goods
- b) A decrease in consumer income
- c) An increase in advertising for a product
- d) A decrease in the price of substitute goods
Correct answer is option 'C'. Can you explain this answer?
Which factor would likely shift the demand curve to the right?
a)
A rise in the price of complementary goods
b)
A decrease in consumer income
c)
An increase in advertising for a product
d)
A decrease in the price of substitute goods
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Sandeep naidu answered |
Understanding Demand Curve Shifts
The demand curve represents the relationship between the price of a product and the quantity demanded by consumers. Several factors can cause this curve to shift, indicating changes in consumer demand.
What Causes a Rightward Shift?
A rightward shift in the demand curve indicates an increase in demand at all price levels. Among the options provided, the correct factor that would likely cause this shift is:
Increased Advertising
- When a company invests in advertising, it increases awareness and perceived value of the product among consumers.
- Effective advertising can create a stronger desire for the product, leading more consumers to buy it regardless of the price.
Other Options Explained
- Rise in Price of Complementary Goods:
- This would likely decrease demand for the product, as higher prices for complementary goods can deter consumers from purchasing both.
- Decrease in Consumer Income:
- A reduction in consumer income typically leads to a decrease in demand for normal goods, shifting the curve leftward.
- Decrease in Price of Substitute Goods:
- Lower prices for substitute goods can lead consumers to switch away from the original product, thereby decreasing its demand.
Conclusion
In summary, the correct answer is option 'C' because increased advertising enhances consumer interest and demand for a product, leading to a rightward shift in the demand curve. Understanding these factors is crucial for businesses and economists in predicting market behavior.
The demand curve represents the relationship between the price of a product and the quantity demanded by consumers. Several factors can cause this curve to shift, indicating changes in consumer demand.
What Causes a Rightward Shift?
A rightward shift in the demand curve indicates an increase in demand at all price levels. Among the options provided, the correct factor that would likely cause this shift is:
Increased Advertising
- When a company invests in advertising, it increases awareness and perceived value of the product among consumers.
- Effective advertising can create a stronger desire for the product, leading more consumers to buy it regardless of the price.
Other Options Explained
- Rise in Price of Complementary Goods:
- This would likely decrease demand for the product, as higher prices for complementary goods can deter consumers from purchasing both.
- Decrease in Consumer Income:
- A reduction in consumer income typically leads to a decrease in demand for normal goods, shifting the curve leftward.
- Decrease in Price of Substitute Goods:
- Lower prices for substitute goods can lead consumers to switch away from the original product, thereby decreasing its demand.
Conclusion
In summary, the correct answer is option 'C' because increased advertising enhances consumer interest and demand for a product, leading to a rightward shift in the demand curve. Understanding these factors is crucial for businesses and economists in predicting market behavior.
What is meant by a change in quantity demanded?- a) A decrease in demand due to consumer preferences
- b) Movement along the demand curve due to price changes
- c) A shift in the demand curve due to external factors
- d) A permanent increase in demand for a good
Correct answer is option 'B'. Can you explain this answer?
What is meant by a change in quantity demanded?
a)
A decrease in demand due to consumer preferences
b)
Movement along the demand curve due to price changes
c)
A shift in the demand curve due to external factors
d)
A permanent increase in demand for a good
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EduRev Class 10 answered |
A change in quantity demanded refers to movement along the demand curve resulting from a change in the price of the good. It indicates how much more or less of the good consumers are willing to purchase at different price levels.
What is the primary reason for the downward slope of the demand curve?- a) Consumer preferences for luxury goods
- b) Increase in production costs
- c) Changes in consumer income
- d) Law of Diminishing Marginal Utility
Correct answer is option 'D'. Can you explain this answer?
What is the primary reason for the downward slope of the demand curve?
a)
Consumer preferences for luxury goods
b)
Increase in production costs
c)
Changes in consumer income
d)
Law of Diminishing Marginal Utility
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Kamna Science Academy answered |
The downward slope of the demand curve is primarily attributed to the Law of Diminishing Marginal Utility, which states that as consumers buy more units of a good, the additional satisfaction (utility) gained from each additional unit decreases, leading them to only purchase more if the price falls.
What three elements are essential for demand to exist for a good?- a) Desire, purchasing power, and willingness to spend
- b) Price, income, and consumer preferences
- c) Price, quantity, and availability
- d) Desire, purchasing power, and marketing strategies
Correct answer is option 'A'. Can you explain this answer?
What three elements are essential for demand to exist for a good?
a)
Desire, purchasing power, and willingness to spend
b)
Price, income, and consumer preferences
c)
Price, quantity, and availability
d)
Desire, purchasing power, and marketing strategies
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Nk Classes answered |
For demand to exist, a consumer must have a desire to buy a good, the purchasing power to afford it, and the willingness to spend money. This combination ensures that a consumer is not just interested in a product but also capable and ready to purchase it.
What happens to the demand curve when the price of a complementary good decreases?- a) It becomes perfectly elastic.
- b) It shifts to the left.
- c) It remains unchanged.
- d) It shifts to the right.
Correct answer is option 'D'. Can you explain this answer?
What happens to the demand curve when the price of a complementary good decreases?
a)
It becomes perfectly elastic.
b)
It shifts to the left.
c)
It remains unchanged.
d)
It shifts to the right.
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Kamna Science Academy answered |
When the price of a complementary good decreases, consumers are likely to purchase more of both goods together, leading to an increase in demand for the primary good. This results in a rightward shift of the demand curve.
What does the income effect describe?- a) Shifts in demand caused by changes in consumer tastes
- b) The effect of advertising on consumer preferences
- c) Changes in demand based on seasonal preferences
- d) Changes in quantity demanded due to a change in real income from price changes
Correct answer is option 'D'. Can you explain this answer?
What does the income effect describe?
a)
Shifts in demand caused by changes in consumer tastes
b)
The effect of advertising on consumer preferences
c)
Changes in demand based on seasonal preferences
d)
Changes in quantity demanded due to a change in real income from price changes
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EduRev Class 10 answered |
The income effect describes how a change in the price of a good affects the purchasing power of the consumer, leading to a change in the quantity demanded. When prices drop, consumers feel richer and tend to buy more.
What is a characteristic of the market demand curve?- a) It slopes downwards.
- b) It slopes upwards.
- c) It reflects only individual demands without summation.
- d) It is always horizontal.
Correct answer is option 'A'. Can you explain this answer?
What is a characteristic of the market demand curve?
a)
It slopes downwards.
b)
It slopes upwards.
c)
It reflects only individual demands without summation.
d)
It is always horizontal.
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Nk Classes answered |
The market demand curve slopes downwards, indicating the inverse relationship between price and quantity demanded. As prices decrease, the total quantity demanded by all consumers in the market increases.
How does the Giffen effect challenge the Law of Demand?- a) It suggests that income does not affect demand.
- b) It illustrates that for certain goods, higher prices can lead to increased consumption.
- c) It shows that all goods behave the same way.
- d) It indicates that lower prices lead to lower demand for inferior goods.
Correct answer is option 'B'. Can you explain this answer?
How does the Giffen effect challenge the Law of Demand?
a)
It suggests that income does not affect demand.
b)
It illustrates that for certain goods, higher prices can lead to increased consumption.
c)
It shows that all goods behave the same way.
d)
It indicates that lower prices lead to lower demand for inferior goods.
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Kamna Science Academy answered |
The Giffen effect is a phenomenon where an increase in the price of an inferior good leads to an increase in quantity demanded, contradicting the Law of Demand. This occurs because consumers may substitute away from more expensive options and buy more of the inferior good.
Which of the following is an example of derived demand?- a) Demand for a luxury car due to a rise in consumer income
- b) Demand for apples when the demand for oranges rises
- c) Demand for labor because of increased production of goods
- d) Demand for bread due to its price increase
Correct answer is option 'C'. Can you explain this answer?
Which of the following is an example of derived demand?
a)
Demand for a luxury car due to a rise in consumer income
b)
Demand for apples when the demand for oranges rises
c)
Demand for labor because of increased production of goods
d)
Demand for bread due to its price increase
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Kamna Science Academy answered |
Derived demand refers to the demand for factors of production or services that arises from the demand for the final goods they help produce. In this case, an increase in production leads to a higher demand for labor.
What is the primary difference between individual demand and market demand?- a) Market demand only considers luxury goods, while individual demand considers all goods.
- b) Individual demand refers to a single consumer’s purchases, while market demand is the total of all consumers’ demands.
- c) Individual demand is based on price changes, while market demand is not.
- d) There is no difference; both terms refer to the same concept.
Correct answer is option 'B'. Can you explain this answer?
What is the primary difference between individual demand and market demand?
a)
Market demand only considers luxury goods, while individual demand considers all goods.
b)
Individual demand refers to a single consumer’s purchases, while market demand is the total of all consumers’ demands.
c)
Individual demand is based on price changes, while market demand is not.
d)
There is no difference; both terms refer to the same concept.
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Kamna Science Academy answered |
Individual demand refers to the quantity of a product that a single household is willing to buy at a specific price, whereas market demand aggregates the individual demands of all consumers in the market for that product. This distinction is crucial in understanding how overall demand is shaped by individual preferences.
Which of the following factors does NOT influence individual demand?- a) Price of the commodity
- b) Income of the consumer
- c) Tastes and preferences
- d) Global economic trends
Correct answer is option 'D'. Can you explain this answer?
Which of the following factors does NOT influence individual demand?
a)
Price of the commodity
b)
Income of the consumer
c)
Tastes and preferences
d)
Global economic trends
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Nk Classes answered |
Individual demand is influenced directly by the price of the commodity, the consumer's income, and their tastes and preferences. Global economic trends may indirectly affect these factors but are not a direct influence on individual demand.
What is the impact of a change in income on the demand curve for normal goods?- a) The demand curve shifts to the right with an increase in income.
- b) The demand curve shifts to the left with an increase in income.
- c) The demand curve becomes vertical.
- d) It has no impact.
Correct answer is option 'A'. Can you explain this answer?
What is the impact of a change in income on the demand curve for normal goods?
a)
The demand curve shifts to the right with an increase in income.
b)
The demand curve shifts to the left with an increase in income.
c)
The demand curve becomes vertical.
d)
It has no impact.
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EduRev Class 10 answered |
For normal goods, an increase in consumer income typically results in an increase in demand, causing the demand curve to shift to the right. Consumers are willing and able to purchase more at every price level.
What is the primary characteristic of the individual demand curve?- a) It shows the total quantity demanded at each price level in the market.
- b) It shifts with changes in consumer income only.
- c) It reflects the quantities a single consumer is willing to buy at different prices.
- d) It is vertical, indicating no relationship between price and quantity demanded.
Correct answer is option 'C'. Can you explain this answer?
What is the primary characteristic of the individual demand curve?
a)
It shows the total quantity demanded at each price level in the market.
b)
It shifts with changes in consumer income only.
c)
It reflects the quantities a single consumer is willing to buy at different prices.
d)
It is vertical, indicating no relationship between price and quantity demanded.
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Kamna Science Academy answered |
The individual demand curve illustrates the various quantities of a commodity that a specific consumer is willing to purchase at different price points. This curve helps to visualize individual consumer behavior in response to price changes.
What effect does an increase in the price of a commodity generally have on the quantity demanded?- a) It increases the quantity demanded.
- b) It leads to a shift in demand to the right.
- c) It decreases the quantity demanded.
- d) It has no effect on quantity demanded.
Correct answer is option 'C'. Can you explain this answer?
What effect does an increase in the price of a commodity generally have on the quantity demanded?
a)
It increases the quantity demanded.
b)
It leads to a shift in demand to the right.
c)
It decreases the quantity demanded.
d)
It has no effect on quantity demanded.
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EduRev Class 10 answered |
According to the law of demand, an increase in the price of a commodity typically results in a decrease in the quantity demanded. This is because higher prices make the good less affordable for consumers, reducing their willingness to purchase it.
Which of the following is an example of competitive demand?- a) The demand for coffee and tea
- b) The demand for cars and gasoline
- c) The demand for printers and ink
- d) The demand for bread and butter
Correct answer is option 'A'. Can you explain this answer?
Which of the following is an example of competitive demand?
a)
The demand for coffee and tea
b)
The demand for cars and gasoline
c)
The demand for printers and ink
d)
The demand for bread and butter
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EduRev Class 10 answered |
Competitive demand refers to the demand for goods that are substitutes for each other. Coffee and tea are alternatives that consumers may choose between depending on their preferences and prices, demonstrating competitive demand.
What does a demand schedule represent?- a) The average price consumers are willing to pay
- b) The quantities of a commodity consumers are willing to purchase at various prices
- c) The historical prices of commodities over time
- d) The total quantity of a commodity available in the market
Correct answer is option 'B'. Can you explain this answer?
What does a demand schedule represent?
a)
The average price consumers are willing to pay
b)
The quantities of a commodity consumers are willing to purchase at various prices
c)
The historical prices of commodities over time
d)
The total quantity of a commodity available in the market
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Kamna Science Academy answered |
A demand schedule is a table that shows the quantities of a commodity that consumers are willing to purchase at different price levels. It helps visualize how demand varies with price, providing insights into consumer behavior.
What happens to demand when consumer preferences shift away from a product?- a) Demand becomes perfectly elastic.
- b) Demand increases.
- c) Demand decreases.
- d) Demand remains unchanged.
Correct answer is option 'C'. Can you explain this answer?
What happens to demand when consumer preferences shift away from a product?
a)
Demand becomes perfectly elastic.
b)
Demand increases.
c)
Demand decreases.
d)
Demand remains unchanged.
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Kamna Science Academy answered |
A shift in consumer preferences away from a product typically leads to a decrease in demand, causing the demand curve to shift to the left. Consumers are less willing to buy the product at any given price.
Which scenario illustrates the substitution effect?- a) A rise in the demand for both coffee and sugar together
- b) Increased demand for a product due to a decrease in its price
- c) A consumer buying more of a good because their income increased
- d) Consumers switching from butter to margarine due to a price increase in butter
Correct answer is option 'D'. Can you explain this answer?
Which scenario illustrates the substitution effect?
a)
A rise in the demand for both coffee and sugar together
b)
Increased demand for a product due to a decrease in its price
c)
A consumer buying more of a good because their income increased
d)
Consumers switching from butter to margarine due to a price increase in butter
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Nk Classes answered |
The substitution effect occurs when consumers replace a more expensive good with a cheaper alternative. In this case, if the price of butter increases, consumers may switch to margarine, demonstrating the substitution effect.
What is the Law of Demand?- a) Demand decreases when prices rise and increases when prices fall, all else being equal.
- b) Demand decreases with price decreases.
- c) Demand increases with price increases.
- d) Demand increases with income increases.
Correct answer is option 'A'. Can you explain this answer?
What is the Law of Demand?
a)
Demand decreases when prices rise and increases when prices fall, all else being equal.
b)
Demand decreases with price decreases.
c)
Demand increases with price increases.
d)
Demand increases with income increases.
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Kamna Science Academy answered |
The Law of Demand states that, all else being equal, when the price of a good decreases, the quantity demanded increases, and when the price increases, the quantity demanded decreases. This reflects the inverse relationship between price and demand.
Which scenario demonstrates the concept of joint demand?- a) An increase in the price of gasoline leading to a decrease in demand for cars
- b) A rise in the demand for printers increasing the demand for ink cartridges
- c) A fall in the price of bread reducing demand for butter
- d) An increase in the price of tea leading to lower demand for coffee
Correct answer is option 'B'. Can you explain this answer?
Which scenario demonstrates the concept of joint demand?
a)
An increase in the price of gasoline leading to a decrease in demand for cars
b)
A rise in the demand for printers increasing the demand for ink cartridges
c)
A fall in the price of bread reducing demand for butter
d)
An increase in the price of tea leading to lower demand for coffee
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Nk Classes answered |
Joint demand occurs when the demand for one good increases the demand for another good that is used in conjunction. In this case, printers and ink cartridges are complementary goods, so an increase in demand for printers will increase the demand for ink cartridges.
Chapter doubts & questions for Elementary Theory of Demand - Economics Class 10 ICSE 2025 is part of Class 10 exam preparation. The chapters have been prepared according to the Class 10 exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Class 10 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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