Scanner - Demand (Theory of Consumer Behaviour) | Economics Class 11 - Commerce PDF Download

NCERT Questions

(Q1) Give the meaning of demand and demand schedule ?

(Q2) Name two determinants of demand ?

(Q3) If the price of good A rises and it leads to an increase in demand for good Y, how are the
two goods related ?

(Q4) If the price of good A rises and it leads to an decrease in demand for good Y, how are the
two goods related ?

(Q5) How will increase in price of coffee affect demand for tea ?

(Q6) How will increase in price of tea affect the demand for sugar ?

(Q7) Given below is demand for Gulamjamun at each possible price
Price (Rs) AMAR AKBAR ANTHONY

1. Calculate Market demand and plot it
2. suppose Akbar is droped out, find new M.D
3. What will be M.D if new person joins them with double the demand of Amar ?

(Q8) What is meant by cross -price effect ? Give two numerical example to illustrate it ?

(Q9) Differentiate between

(a) Substitute and Complementary Good
(b) Normal and Inferior Good

(Q10) How does an increase in income affect the demand curve for

(a) Normal (b) Inferior Good

(Q11) How is the market demand curve derived from the individual demand curves ?

(Q12) Distinguish between individual and market demand curves ?

(Q13) Distinguish between change in quantity demanded and change in demand ?

(Q14) Explain the determinants of market demand curves ?

(Q15) Why does demand curve slopes downward ?

(Q16) Determine how the following changes will affect market demand curve for a product

(a) A new steel plant comes up in Jharkhand. Many people who were previously
unemployed in the area are now employed. How will this affect the demand curve for colour TVs and Black and White TVs in the region ?
(b) In order to encourage tourism to Goa, the GOI suggests Indian Airlines to reduce air
fare to Goa from the four major cities - Chennai, Kolkata , Mumbai and New Delhi. If the Indian airlines reduces the air fare to Goa, how will this affect the market demand curve for air travel to Goa?

(c) There are train and bus services between New Delhi and Jaipur. Suppose that the
train fare between the two sities comes down. How will this affect the demand curve for bus travel between the two cities ?

(Q17) Explain the impact on demand curve of :

(a) Railways with the commencement of budget airlines which are as cheap as 2nd A.C
fare

(b) Computer Disks ( CD ) when the price of computer increases

(c) Clothes when The TATA group announces a bonus for its employees

(Q18) What is the slope of giffen goods ?

(Q19) From the given demand function Qx = 100 - 2P , derive the individual demand schedule and demand curve. What is the maximum quantity the individual will demand of commodity X per time period ?

C.B.S.E Quetions

(Q1) Explain the effect of rise in price of related goods on the demand of a good ?

(Q2) Distnguish between

(a) Normal Good and inferior good
(b) Individual and market demand Schedule
(c) Total utility and Marginal Utility

(Q3) When is a good called an inferior good

(Q4) Explain law of demand with the help of schedule and diagram ?

(Q5) State any three causes of a rightward shift of demand curve of a commodity.

(Q6) Explain any three factors, other price of a commodity that affect its demand ?

(Q7) Show the effect of the following on demand for a commodity
(a) A rise in the money income of household
(b) A Fall in prices of other commodity
(c) A fall in price of substitute goods
(d) Unfavourable change in taste

(e) Fall in income of inferior goods
(f) Rise in price of complementary good

(Q8) Explain law of demand and reasons behind it ?

(Q9) Define Market demand ?

(Q10) What cause downward movement of demand curve and what it is called ?

(Q11) Distinguish between decrease in quantity demanded and decrease in demand ?

(Q12) Why does consumer buy more // less of a commodity at given price ?

(Q13) Explain Law of Demand with assumption ?

(Q14) If the Quantity demanded of X good decreases as the household income increase, what type of good X is ?

(Q15) How is the demand for the commodity affected by an increase in the income of consumer?

(Q16) Explain income, substitution and price effect on demand ?

(Q17) When will rise in demand called expansion of demand and when will it be called an increase in demand ?

Sample Paper & C.B.S.E Question’s

(Q1) State three changes leading to the shift of demand curve of a consumer to the right.

(Q2) Distinguish between an inferior good and a normal good. Explain the effect of change in income on each giving suitable examples.

(Q3) Define change in demand?

(Q4) Explain the effect of rise in the prices of related goods on the demand for a good X. Use diagrams. OR Explain the effects of rise in income on demand for a good. Use diagram.

(Q5) What is a demand schedule?

(Q6) Explain the effect of the following on demand for a good:
(i) Rise in income
(ii) Rise in prices of related goods

C.B.S.E Questions

(Q1) What is meant by inferior good in economics ?(1)

(Q2) Distinguish between demand by an individual and market demand with the help of a schedule.(3)

(Q3) State the law of demand and show it with the help of a schedule.(3)

(Q4) Explain the effect of the following on the market demand of a commodity :(6)

(i) Change in price of related goods
(ii) Change in the number of its buyers

(Q5) State the causes of an ‘increase’ in demand. Explain any two of them.(6)

CBSE + Sample Paper Question’s

(Q1) What is menat by inferior good in economics ?(1M)

(Q2) Explain any two causes of ‘increase’ in demand of a commodity.(3M)

OR
Explain the inverse relationship between price and quantity demanded of a commodity.

(Q3) What causes an upward movement along a demand curve of a commodity ?(1 M)

(Q4) Explain the inverse relationship between the price of a commodity and its demand.(3 M)

(Q5) State any three factors that cause an ‘increase’ in demand of a commodity.(3 M)

(Q6) Explain the effect of a rise in the prices of ‘related goods’ on the demand for a good X.

CBSE Questions

 (Q1) Give one reason for a shift in demand curve.(1 M)

(Q2) Explain how rise in income of a consumer affects the demand of a good. Give examples.(4 M)

(Q3) Explain the difference between (i) inferior goods and normal goods(4 M)

(Q4) Good X and Y are substitutes . Explain the effect of fall in price of Y on demand of X. 

(Q5) Explain how demand for a good is affected by the prices of its related goods . Give examples . 

(Q6) Derive the inverse relation between price of good and its demand from the single commodity equilibrium condition “ Marginal Utility = Price” 

OR

Show that price and demand of a commodity are inversely related ? Use utility analysis.

(Q7) True or False with reason
(a) If the Goods X and Y are substitutes , a rise in price of X will result in a rightward shift in demand curve
(b) The demand for commodity always increases with increase in the price of other goods

(c) The demand for good increases with the increase in the income of its buyer ( T , F , F )

Sample Paper 

(Q1) Ceteris Paribus, if the government provides subsidies on electricity bills, what would be the likely change in the market demand of desert coolers?(1M)

Ans: Demand for desert coolers will increase

(Q2) State the meaning of ‘quantity demanded of a commodity‘.

Ans:  Quantity demanded is that quantity of a commodity which a consumer is willing and able to buy at a particular price and a given point of time

(Q3) What policy initiatives can the government undertake to increase the demand of milk in the country? Mention any one.

Ans: Give subsidies to reduce price.   (Any one) -  Undertake health campaigns to promote the positive effects of milk consumption.

(Q4) A good is an ‘inferior’ good for one and at the same time ‘normal ‘good for another consumer. Do you agree? Explain with the help of an example. (4)

Ans:  Yes, the same good can be inferior for one person and normal for another.

→ Whether a good is normal or inferior is determined by the income level of the consumer.A good which is a normal good for a consumer with a lower income, may become an inferior good for a consumer with higher income. (2)

→ For example, coarse cloth may be a normal good for a low income consumer, but for a highincome consumer it may be an inferior good as she can afford a better quality cloth.

Thus, when a consumer moves to a higher income level, she may consider coarse cloth as being below their income status, and has the ability to buy more expensive fine cloth, thus considering coarse cloth as being inferior. (2)

(Q5) On 19 December 2013, the following news item was printed in the Economic Times :

“Households in Southern India prefer to eat oranges for breakfast as banana plantations in Kerala have been destroyed and prices of apples and grapes have also risen.” Analyse the impact of the rise in price of apples and grapes on the market of oranges.

C.B.S.E & Sample Paper

(Q1) What does a rightward shift of demand curve indicate ?(1 M)

Ans:  It indicates increase in demand at the same price.

(Q2) How is the demand for a good affected by a rise in the prices of other goods ? Explain.(3 M)

(a) Substitute Goods :: When prices of substitute goods rise the demand for the given good will rise as it will be substituted for other goods.

(b) Complementary Goods  :: When price of complementary good rises the demand for the given good will fall due to fall in demand for complementary good.     (1½ + 1½ )

(Q3) What is ‘market’demand ? State four factors causing ‘increase’ in market demand.(4 M)

Ans: Market demand is the sum total of demand by all the buyers of a good at a price during a period.

C.B.S.E Paper 

(Q1) Give the meaning of “inferior”good and explain the same with the help of an example.(4M)

Ans: When with the rise in income of a consumer, the consumer buys less quantity of a good, then that good is an inferior good for that consumer. Suppose when the consumer’s income rises, he buys less of coarse cloth and purchasesfine cloth. Then for that consumer specifically coarse cloth is an inferior good.

(Q2) How does change in price of a complementary good affect the demand of the given good? Explain with the help of an example.(4 M)

Ans: Change in price of a complementary good affects the demand for the given good. Suppose X is the given good and Y is the complementary good. Suppose price of Y rises. This decreases demand for the complementary good Y. Since X and Y are used jointly, demand for X will also fall. It establishes inverse relation between price of the complementary good and demand for the given good.

(Q3) How does change in price of a subsitute good affect the demand of the given good? Explain with the help of an example.

Ans: This establishes direct relation between price of the substitute good and demand of the given good.

(Q4) What is meant decrease in demand ?(1 M)

(Q5) Give one reason for leftward shift in demand curve.(1 M)

(Q6) Distinguish between an inferior and anormal good .Is a good which is inferior for one conssumer also inferior for all the consumers ? Explain

Ans: W hen with the rise in income of the consumer demand for a good increases, that good is a normal good for that consumer. If with rise in income demand for the good decreases than that good is inferior for that consumer.  A good is not necessarily inferior for all the consumers. A good which is inferior for a higherincome consumer may be a normal good for the lower income consumer. It is not the consumer but the income level of the consumer which determines whether a good is normal or inferior.

(Q7) Distinguish between demand by a individual consumer and market demand of a good . also state the factor leading to fall in demand by an individual consumer

Ans: Demand by an individual refers to the quantity of a good the consumer is willing to buy at a price during a period of time .While market demand refers to the quantity of a good the consumers of that good are willing to buy at a price during a period of time .

The factors leading to fall in demand by an individual consumers are :
1) Rise in own price of the normal good
2) Fall in the price of substitute good

3) Rise in the price of complementary good
4) Fall in the income of the consumers in case of a normal good
5) Rise in income of the consumers in case of an inferior good
6) Decline in taste for the good (any four ) (or any other )

C.B.S.E Paper

(Q1) If due to fall in the price of good X, demand for good Y rises, the two goods are : (1 M)

(a) Substitutes
(b) Complements
(c) Not related
(d) Competitive

Ans:  (b) Complements.

(Q2) If with the rise in price of Good-Y, demand for Good-X rises, the two goods are : (choose the correct alternative)

(a) Substitutes
(b) Complements
(c) not related
(d) Jointly demanded

(Q3) The demand curve of a good shifts from DD` to dd`.  [Delhi (C)]
This shifts can be caused by :
(a) fall in pricee of a good
(b) rise in price of a good
(c) rise in price of substitute goods
(d) rise in price of complementary goods

(Q4) If income of the consumer falls the impact on the price - demand curve of an inferior good

(a) shifts to the right
(b) shifts to the left
(c) there is upward movement along the curve
(d) there is downward movement along the curve

(Q5)  What economic measure can the Government take to reduce demand for commodity x which is harmful for health ?

Ans: Put a tax on it so that its price rises. (any other relevant measure)

(Q6) Explain the difference between ‘change in demand’ and ‘change in quantity demaned’.

(Q7) Explain the effect of the following on the demand for a good : (6)

(i) Increase in income of its consumer

(ii) Rise in price of its substitute good

Ans: (i) When the good is normal, increase in income of its consumer raises his purchasing power, so he buys more of it. 1½

When the good is inferior, then with an increase in income the demand for such good will fall

(ii) Rise in the price of substitute goods makes the given good relatively cheaper.
So its demand increases and demand for substitute good falls.      3

(Q8) Explain the effect of the change in the prices of related goods on the demand for a given good.

(Q9) Explain any three causes of a rightward shift in demand curve.

Ans: Causes for rightward shift in demand curves :

(a) Increase in income if the good is normal.

(b) Rise is price of substitute good. (any other relevant cause) 1 X 3

(c) Fall in price of complementary good. (Explanation)    1x3

Sample paper

(Q1) What policy initiatives can the government undertake to increase the demand of milk in the country ? Mention any one.(1 M)

(Q2) A good is an ‘inferior’ good for one and at the same time ‘normal’ good for another consumer. Do you agree ? Explain with the help of an example.(4 M)

On 19 December 2013, the following news item was printed in the Economic Times : “Households in Southern India prefer to eat oranges for breakfast as banana plantations in Kerala have been destroyed and prices of apples and grapes have also risen.” Analyse the impact of the rise in price of apples and grapes on the market of oranges.

CBSE

(Q1) When does ‘change in demand’ take place ? (1M) 

Ans:  When there is change in a factor affecting demand other than own price of the good

(Q2) When does “change in quantity demanded” take place ? (1M)

when there is change in own price of the good

(Q3)  When does ‘decrease’ in demand take place ?

Ans: When there is decrease in demand due to a factor other than own price of the good or naming a factor like fall in price of substitute, etc.

(Q4) Define demand. Name the factors affecting market demand. (4M)

(Q5) Distinguish between individual’s demand and market demand. Name the factors affecting demand for a good by an individual. (4M)

(Q6) Price elasticity of demand of good X is “2 and of good Y is “3. Which of the two goods is more price elastic and why ?   (3) 

Ans: Y is more price elastic because one percent fall (rise) in price will lead to higher percent i.e. rise (fall) in demand. (or any other relevant explanation)          (3)

(Q7) Explain the effects of change in income on demand for a good.

(Q8) Explain the effect of

(a) change in own price , and

(b) change in price of substitute on demand of a good

CBSE

(Q1) Any statement about demand for a good is considered complete only when the following is/are mentioned in it (Choose the correct alternative) :  (1M)

(a) Price of the good

(b) Quantity of the good

(c) Period of time 

(c) All of the above 

Ans: (d)                        

(Q2) Distinguish between ‘increase in demand’ and ‘increase in quantity demanded’ of a good.

Ans: When demand of a good rises due to a fall in its price, it is called ‘increase in quantity demanded’ and when demand of a good rises at the same price of the good, it is called ‘increase in demand’.  (3M)

(Q3) Giving reason, state the impact of each of following on demand curve of a normal good ‘X’ if     

(i) Price of its complementary good falls. 

(ii) News reports claims that consumption of product X has harmful effect on human health

(iii) Income of consumer increases,

Ans: (i)  Demand of the good X will increases, hence demand curve of good X shifts towards right.

(ii) Demand of Good X may decrease as people may be inclined to consume less due to media reports of harmful effect of the good X, as a result, demand curve may shift towards left.

(iii) The disposable income increases and consumer is in a better position of spending more on the good X. Hence consumer may consume more of the commodity due to which the demand for the good increases and demand curve shifts away from origin.