Demand and Supply

The desire shown by the customer to purchase or take the commodity is the demand for the goods. And the available quantity of that is the amount of goods supply. The demand and supply altogether influence the market. For example, the economy may still be in turmoil, but our product is strong, and so are its effects. This is the perfect time to enjoy wellness.

Here is a list of multiple-choice questions based on demand and supply.

1. When the demanded goods quality is equal to supplied good’s quantity, then____.

1. 1. when you see a shortage
   2. when you see a surplus
   3. when you see the government is investing in the market
   4. none of these

Answer: (D) None of these

2. The shape of the demand curve is_____.

1. 1. downward sloping
   2. upward-sloping
   3. vertical
   4. horizontal

Answer: (A) downward sloping

3. When the restaurant that serves fast food increases in the number, this leads to_____.

1. 1. An increase in fast-food meal supply
   2. the growth in fast-food meal demand
   3. a growth is seen in the demand for substitutes for such meals
   4. increase in the rate of such meals

Answer: (A) An increase in fast-food meal supply

4. Many of the supply curve____ due to increases in marginal cost.

1. 1. is vertical
   2. is horizontal
   3. has a positive slope
   4. has a negative slope

Answer: (C) has a positive slope

5. When one moves up with the supply curve, which one of these metrics is not a part of the constant factor?

1. 1. the seller numbers
   2. the commodity prices
   3. expected prices in the future
   4. the resources cost that was used for commodity production

Answer: (B) the commodity prices

6. What will be the supply when the price change is by 1%, and the change in supply is by 2%? 

1. 1. indeterminate
   2. elastic
   3. inelastic
   4. static

Answer: (B) elastic

7. What will happen if the rate of complementary goods has a downfall or there’s an increase in consumer income?

1. 1. the products demand curve shifts towards the right 
   2. the products supply curve shifts toward the right 
   3. the products supply curve shifts toward the right 
   4. the products demand curve shifts towards the right 

Answer: (D) the products demand curve shifts towards the right 

8. While we draw the demand curve, which of these assumptions are there?

1. 1. the substitute price should not change
   2. the curve for demand should be linear
   3. there should be no change in commodity price
   4. the demanded quantity does not change

Answer: (a) the substitute price should not change

9. The relation of ______ is by the law of demand.

1. 1. the quantity and price of commodity 
   2. the price and income of commodity
   3. demand quantity and demand-supply of commodity
   4. income and demand quantity of a commodity

Answer: (A) the quantity and price of a commodity

10. For the demand for durable goods, the elasticity is____.

1. 1. zero
   2. greater than the unity 
   3. equal to the unity
   4. less than the unity

Answer: (B) greater than the unity

11. The demand elasticity turns out to be _____when the product price comes down by 10% and the demand for the product goes up by 30%.

1. 1. 3
   2. 30
   3. 13
   4. d.10

Answer: (A) 3

12. The demand for commodity turns out to be ____ when the demanded quantity of commodity does not respond to change in its prices.

1. 1. inelastic
   2. unit elastic
   3. elastic
   4. perfectly inelastic

Answer: (D) perfectly inelastic

13. Which one out of the mentioned options is not a cause of change or shift in demand for any product?

1. 1. when the substitute price is changed
   2. when there is a change in product price
   3. when a change in consumer income is seen
   4. none of these

Answer: (B) when there is a change in the product price

14. When for a commodity, the elasticity of demand is low, the product______?

1. 1. Is a necessity
   2. is a luxury
   3. is a little important in overall budget
   4. none of these

Answer: (A) is a necessity

15. A price increase price will result in_____ when the product demand is perfectly inelastic.

1. 1. a rise in total income from a certain product
   2. a downfall in the demanded quantity of product
   3. no changes in total income from a certain product
   4. a reduction in total income from a certain product

Answer: (A) a rise in total income from a certain product

16. When the total revenue from product and the price moves in the same direction, then the demand is________.

1. 1. elastic
   2. perfectly elastic
   3. unrelated
   4. inelastic

Answer: (D) inelastic

17. The supply curve will be_____ when the supply elasticity is greater than one.

1. 1. horizontal
   2. vertical
   3. touching y-axis
   4. passing through the origin 

Answer: (C) touching the y-axis

18. Can an increase in demand for certain products make the supply curve shift in any direction?

1. 1. the curve will move in the right direction
   2. no effect on the supply
   3. A change in the slope of a supply curve
   4. the curve will move in the left direction

Answer: (B) no effect on the supply

19. We can see the upward slope of a firm supply curve due to____.

1. 1. consumers see a positive relationship between the quantity and price
   2. the production expansion leads to the use of inferior inputs
   3. the cost of production of extra units of output will rise beyond a point
   4. none of these

Answer: (C) the cost of production of extra units of output will rise beyond a point

20. Without changing the price_____ moves to a rise in commodity supply.

1. 1. fall in the supply
   2. decrease in the supply
   3. the rise in the supply
   4. expansion in the supply 

Answer: (C) the rise in the supply

21. In a certain year, the workers experienced bad weather. If the rest of the factors remain the same, the supply curve of that product will move in which direction?

1. 1. leftward
   2. upward 
   3. rightward
   4. none of these 

Answer: (A) leftward

22. If the supply curve of the market moves to the right side, which of these will explain the shift at best?

1. 1. making a commodity production at low cost by introducing a new technique
   2. increase in the raw material rate
   3. government introducing a tax on that certain product
   4. none of  the above 

Answer: (A) making a commodity production at low cost by introducing a new technique

23. Out of these scenarios, which one will not change the curve of demand for a certain product?

1. 1. when we see a reduction in the amount of raw material of that thing or product
   2. when a study says, the product is not good for health  
   3. when we see another campaign for goods
   4. change in consumers’ income

Answer: (A) when we see a reduction in the amount of raw material of that thing or product

24. Out of these scenarios, which won’t lead to a demand change for the product?

1. 1. a switch in consumer taste 
   2. increase in consumer income
   3. changes in the price
   4. none of these

Answer: (D) None of these

25. In July 2012, a company was giving 6000kgs of flour at the market value of rupee 40 per kg. But in august 2012, the flour supply was reduced to 5500 kg at the market value of rupee 30kg. This change in flour supply is_____.

1. 1. less elastic
   2. more elastic
   3. perfectly elastic
   4. perfectly inelastic

Answer: (A) less elastic

26. The demand curve that’s horizontal and parallel to the x-axis shows the elasticity of demand to be____.

1. 1. infinite 
   2. zero
   3. greater than zero
   4. equals to one 

Answer: (A) infinite

27. Which of these doesn’t lead to a change in the demand curve?

1. 1. advertisement
   2. price of product
   3. income
   4. related product price

Answer: (b) price of the product

28. An increase in income in the countries that are developing leads the curve of demand shift to _____.

1. 1. up
   2. down
   3. left
   4. right

Answer: (D) right

29. Coffee and tea are ____ types of goods.

1. 1. complimentary
   2. substitute
   3. normal
   4. inferior

Answer: (B) substitute

30. Tell the marginal revenue of a company that sells an item at a rate of rupee 20 and the elasticity rate of demand for that item is (-) 4.

1. 1. 15
   2. 19
   3. 5
   4. 30

Answer: (C) 5

31. Mention the responsible factor in demand for any natural resource?

1. 1. increase in human population
   2. scientific advancement
   3. environmental pollution
   4. use of biodegradable resources

Answer: (A) increase in the human population

32. Name a phenomenon in which the consumer tends to be exclusive and different by asking for less commodity as many of the people consume the same. 

1. 1. substitution effect
   2. price effect
   3. bandwagon effect
   4. snob effect

Answer: (D) snob effect