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Question
State whether the following statement is True or False :
Demand for necessary goods is inelastic.
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Solution
Demand for necessary goods is inelastic - True.
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RELATED QUESTIONS
Explain, with reasons, whether you Agree or Disagree with the following statement
There are no exceptions to the Law of Demand.
| Group 'A' | Group 'B' | ||
| a. | Pen and ink | 1 | Quantity-price |
| b. | Revenue | 2 | Accident |
| c. | Insurable risk | 3 | Transfer income |
| d. | Unemployment allowance | 4 | Short period |
| e. | Reverse repo rate | 5 | Long period |
| 6 | Change in demand | ||
| 7 | Joint demand | ||
| 8 | Quantity * price |
State whether the following statement is True or False.
Demand for perishable goods is inelastic.
Demand curve and Supply curve.
The demand of a commodity, when measured through the expenditure approach, is inelastic. A fall in its price will result in : (choose the correct alternative)
(a) No change in expenditure on it.
(b) Increase in expenditure on it.
(c) Decrease in expenditure on it.
(d) Anyone of the above.
Demand for a good is termed inelastic through the expenditure approach when if (choose the correct alternative)
a) Price of good falls, expenditure on it rises
b) Price of the good falls, expenditure in it falls
c) Price of the good falls, expenditure on it remains unchanged
d) Price of the good rises, expenditure in it falls
Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.
Demand deposits include (choose the correct alternative)
(a) Saving account deposits and fixed deposits
(b) Saving account deposits and current account deposits
(c) Current account deposits and fixed deposits
(d) All types of deposits
When the income of the consumer falls the impact on a price-demand curve of an inferior good is: (choose the correct alternative)
a. Shifts to the right.
b. Shifts of the left.
c. There is upward movement along the curve.
d. There is downward movement along the curve
If due to fall in the price of good X, demand for good Y rises, the two goods are : (Choose the correct alternative)
a. Substitutes
b. Complements
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d. Competitive
When is demand called perfectly inelastic?
State the factors leading to fall in demand by an individual consumer
Demand for electricity is elastic.
Give one reason for shift in demand curve.
Fill in the blank using proper alternative given in the bracket:
Perfectly inelastic demand curve is.....................................................
Fill in the blank with proper alternatives given in the bracket:
Indirect demand is also known as _______ demand.
State whether the following statement is true or false.
Perfectly inelastic demand curve is parallel to ‘X’ axis.
Write short answer for the following question.
Explain the Law of Demand.
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Demand for salt is ...............
State and explain the law of demand.
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Demand for car and petrol is ____________ de
Write whether the following statement is True or False:
Demand for commodities depends upon various factors.
Write whether the following statement is True or False:
Salt has elastic demand.
Define the concept of demand schedule.
Write Explanatory answer.
State and explain the law of demand with its exception.
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The law of demand states ________ relation between demand and price.
fill in the blank with appropriate alternatives given in the bracket:
Demand for salt is ___________.
Write the answer in ‘one’ or ‘two’ paras.
What are the main determinants of aggregate demand?
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When less is purchased at the constant price, it is called _______ in demand.
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When the price of petrol goes up, demand of cars will ___________.
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Market demand is an aggregate of purchasing by _________ buyers.
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Indirect demand is also known as _____________ demand.
Match the following:
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Group A
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Group B
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1. Demand and price
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a. Substitute goods
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2. Tea and coffee
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b. Inverse relation
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3. Inferior goods
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c. Joint demand
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4. Factors of production
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d. Distribution of income
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5. Pen and ink
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e. Composite demand
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f. Giffen goods
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g. Indirect demand
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State whether the following statement is TRUE and FALSE
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When demand increases, the demand curve shifts to the left.
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Quantity demanded varies directly with price.
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Individual demand is a demand by single buyer.
Define the following concept:
Derived demand
Define or explain the following concept:
Direct demand
Give reason or explain the following statement.
Demand for factors of production is derived demand.
Do you agree with the following statement? Give reason
Many factors influence the demand for a commodity.
Fill in the blank using appropriate alternatives given below
The demand for perishable goods is _______
Answer the following question.
Discuss the relationship between the income of the consumer and demand for a commodity with respect to normal goods, inferior goods, and necessities.
Distinguish between substitute goods and complementary goods, with examples.
State whether the following statement is true or false. Give reasons for your answer :
X and Y are complementary goods. A fall in the price of Y will result in a rise in the price of X.
If the income of a consumer increases, discuss briefly its likely impact on the demand for a inferior good, Good X.
Choose the correct answer from given options
In the given figure X1Y1 and X2Y2 are Production Possibility Curves in two different periods T1 and T2 respectively for Good X and Good Y. A1 and A2 represent actual outputs and P1 and P2 represent potential outputs respectively in the two times periods.
The change in actual output of Goods X and Y over the two periods would be represented by a movement from __________.
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Elaborate the law of demand, with the help of a hypothetical schedule.
In case of ______ supply curve is a vertical straight line parallel to Y-axis.
We say that there is a decrease in demand when ______
Which of the following points relates to the transaction demand for money?
There is a sudden change in climatic conditions resulting in hot weather. Assuming no change in the price of the cold drinks, it will lead to ______
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From the set of statements given in Column A and Column B, choose the correct pair of statement:
| Column A | Column B |
| 1. Reduction of pollution | (a) Microeconomics |
| 2. Problems due to unemployment | (b) Microeconomics |
| 3. Shift in the demand curve | (c) Microeconomics |
| 4. Government expenditure on building of roads | (d) Microeconomics |
Are the concepts of demand for domestic goods and domestic demand for goods the same?
Area under MC curve is equal to:
Which of the following can cause an increase in demand:
Aggregate demand can be decreased by:
Which of the following statements is correct with respect to the correction of Excess Demand?
Which of the following is correct?
Which of the following statements is false?
Identify the market form which has indeterminate demand curve:
Read the following news report and answer the Q.97-Q.100 on the basis of the same:
The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain.
In which of the following cases there will be leftward shift in demand?
Read the following news report and answer the Q.97-Q.100 on the basis of the same:
The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain.
What is meant by the contraction of demand?
Read the following news report and answer the Q.97-Q.100 on the basis of the same:
The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain.
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| Column A | Column B | ||
| (1) | Increase in demand for goods | (a) | Leftward shift in the demand curve |
| (2) | Decrease in demand | (b) | Perfectly Elastic Demand |
| (3) | Ed = ∞ | (c) | Increases in the income of the consumer |
| (4) | Downward Sloping | (d) | Income elasticity of Demand |
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Assertion (A): Demand deposits are not legal tenders.
Reason (R): They are with the bank, so only can be used as a legal tender when cheques are issued for the transfer.
The figure given below shows the relation between the quantity demanded for the good X and the price of the good Z. What type of goods are X and Z?
Milk is used for making curd, sweets and chocolates.
What type of demand does milk have? Give a reason.
Read the passage given below and answer the questions that follow.
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In India, Fixed deposits have long been a favourite investment choice of people, especially senior citizens, as it promise steady returns. It attracts those who are seeking a stable income. But it’s an illusion in the period of inflation. Inflation is the rate at which the general level of prices for goods and services rises, subsequently eroding the purchasing power of money. In simple terms, what money could buy today might not a few years down the line. Fixed deposits are financial instruments offered by banks where you deposit a lump sum amount for a fixed period at a predetermined rate of interest. Consider an investment of Rs 1 crore in a fixed deposit at a 6% annual interest rate and the annual rate of inflation is 5%. By the 10th year your pre inflation return is 1.79 crore, but post inflation it’s just 1.10 crore. The nominal value of investment in fixed deposits may appear to grow, inflation significantly diminishes their real value and purchasing power over time.
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- What is the theme of the extract? (2)
- Differentiate between Demand pull and Cost push inflation. (2)
- What are the demand deposits and time deposits? (2)
- Since 1998 RBI has been using new measures of money supply, M0, M1, M2 and M3. Which one of these measures incorporates fixed deposit as one of its components? Mention the other components of that measure. (2)
Which of the following best describes 'desire' in economics?
Demand must always be expressed along with ______.
“I want a car but do not have money to buy it.” In economics, this statement refers to ______.
Which of the following is an example of effective demand?
Demand for air or sunlight is not considered in economics because ______.
Micro view of demand relates to ______.
The formula for demand can be written as ______.
