# Test: Theory Of Demand And Supply- 2

## 40 Questions MCQ Test Economics for CA CPT | Test: Theory Of Demand And Supply- 2

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Attempt Test: Theory Of Demand And Supply- 2 | 40 questions in 40 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Economics for CA CPT for CA Foundation Exam | Download free PDF with solutions
QUESTION: 1

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QUESTION: 2

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QUESTION: 3

### Which of the following is a property of an indifference curve?

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QUESTION: 4

When economists speak of the utility of a certain good, they are referring to

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QUESTION: 5

A vertical supply curve parallel to Y axis implies that the elasticity of supply is :

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QUESTION: 6

The supply of a good refers to :

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QUESTION: 7

An increase in the supply of a good is caused by :

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QUESTION: 8

Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its :

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QUESTION: 9

A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is :

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QUESTION: 10

Contraction of supply is the result of :

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QUESTION: 11

Conspicuous goods are also known as

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QUESTION: 12

The quantity purchased will remain constant irrespective of the change in income. This is known as

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QUESTION: 13

As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall. This means:

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QUESTION: 14

When income increases the money spent on necessaries of life may not increase in the same proportion, This means

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QUESTION: 15

The luxury goods like jewellery and fancy articles will have

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QUESTION: 16

The good which cannot be consumed more than once is known as

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QUESTION: 17

A relative price is

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QUESTION: 18

The quantity demanded of a good or service is the amount that

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QUESTION: 19

Demand is the

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QUESTION: 20

If, as people’s income increases, the quantity demanded of a good decreases, the good is called

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QUESTION: 21

The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are

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QUESTION: 22

Chicken and fish are substitutes. If the price of chicken increases, the demand for fish will

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QUESTION: 23

Potato chips and popcorn are substitutes. A rise in the price of potato chips will ———— —— the demand for popcorn and the quantity of popcorn will ———————

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QUESTION: 24

Apple juice and orange juice are substitutes in consumption and apple juice and apple sauce are substitutes in production. If the price of orange juice———————— or the price of apple sauce ————————————, then the price of apple juice will ——— —————————

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QUESTION: 25

An increase in the demand for computers and an increase in the number of sellers of computers will

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Explanation : An increase in demand for computers and increase in number of sellers of computers will decrease the number of computers bought. This is because the supply and demand have increased and the quantity demanded will also increase to achieve equilibrium.

QUESTION: 26

When total demand for a commodity whose price has fallen increases, it is due to:

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QUESTION: 27

With a fall in the price of a commodity:

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QUESTION: 28

With an increase in the price of diamond, its demand also increases. This is because it is a:

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QUESTION: 29

The goods that exhibit direct price-demand relationship are called:

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QUESTION: 30

In Economics when demand for a commodity increases with a fall in its price it is known as:

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QUESTION: 31

The quantity supplied of a good or service is the amount that

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QUESTION: 32

Supply is the

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QUESTION: 33

In the book market, the supply of books will decrease if any of the following occurs except

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QUESTION: 34

If the price of a video rental is below the equilibrium price, the quantity supplied is ——— ———————— than the quantity demanded. If the price of video rentals is above the equilibrium price, the quantity supplied is ——————— than the quantity demanded.

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QUESTION: 35

An increase in the number of sellers of bikes will increase the

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QUESTION: 36

If the supply of bottled water decreases, the equilibrium price ——————————— and the equilibrium quantity ——————————————

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QUESTION: 37

An increase in the demand for cameras and an increase in the number of sellers of cameras will

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QUESTION: 38

If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought

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QUESTION: 39

Comforts lies between the

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QUESTION: 40

In a very short period the supply

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