Joi

nCAI
IBWI
THASHOKonYouTube

Chapt
er2:
Suppl
yandDemand(
MCQs)

Wewi
llst
udysomei
mpor
tantMCQs

Ques1:DemandSchedul
eisr
elat
ionshi
p
bet
ween
A)Demand&Quant
it
ybought
B)Pr
ice&Qual
it
ybought
C)Pr
ice&demand
D)Noneoft
hese
Ques2:Mar
ketDemandobey
A)LawofDi
mini
shi
ngr
etur
n
B)Lawofupwar
dsl
opi
ngdemand
C)Lawofdownwar
dsl
opi
ngdemand
D)Al
ltheabov
e
Ques3: Mar
ketequi
li
bri
um comesatthepri
ce
atwhichquant
it
ydemandedi sequalt
oqual
ity
----
A)I
nvent
ed
B)Pr
oduced
C)Suppl
ied
D)Demanded
Ques4:
Suppl
ycur
ver
elat
esquant
it
ysuppl
i
ed
t
o
A)Demand
B)Pr
ice
C)I
ncome
D)Pr
oduced
Ques5:
For
cesbehi
ndt
heSuppl
yCur
ve
A)Technol
ogi
caladv
ancement
B)Gov
ernmentPol
i
cy
C)CostofPr
oduct
ion
D)Al
lofAbov
e
Ques6:
Equi
li
bri
um pr
icei
sal
soknownas
A)Opt
imum Pr
ice
B)Mar
ketPr
ice
C)RealPr
ice
D)Mar
ketCl
ear
ingPr
ice
Ques7: DownwardSlopi
ngDemandCur
ve
rel
atesquanti
tydemandedt
o
A)Pr
ice
B)I
ncome
C)Demand
D)Suppl
y
Ques8:
For
cesbehi
nddemandcur
ve
A)Av
erageI
ncome
B)Expect
ati
onaboutf
utur
eeconomi
ccondi
ti
ons
C)costofpr
oduct
ion
D)Bot
hA&B
Ques9:
Shi
ft
sinSuppl
yordemandmeans
A)Whenchangeingoodsownpr
iceaf
fectt
he
quant
it
ysuppl
ied
B)Whenchangesi
nfactor
sot
herthangoodsown
pr
iceaf
fectt
hequant
it
ysuppl
ied.
C)Bot
hA&B
D)None
Ques10:Demandcurvehasdownwar
dsl
ope,
whatdoesitmeans:
A)I
fpr
icegoupt
hendemandwi
llgodown
B)I
fpr
icegoupt
hendemandwi
llgoup
C)I
fpr
icegodownt
hendemandwi
llgodown
D)None
Ques11:AsthePri
cegoesuptheDemand
goesdown,Whataret
hereasons
A)Subst
it
uti
onef
fectonl
y.
B)Subst
it
uti
onef
fect
,incomeef
fect
C)I
ncomeef
fectonl
y
D)None
Ques12: I
fbuyer
sexpectthatt
hepri
ceof
cer
taincommoditywil
lri
sesoon,whati
mpact
i
twillhaveondemandofthatcommodity
A)Demandwi
lli
ncr
ease
B)Demandwi
lldecr
ease
C)Noef
fect
D)None

Ques13:
Ifpr
iceofPenci
lgoeshighthen
peopl
eli
ketobuypeninplaceofPencil
,thi
sis
cal
led
A)Di
mini
shi
ngef
fect
B)i
ncomeef
fect
C)Pr
iceef
fect
D)
Subst
it
uti
onef
fect
Joi
n"CAI
IBWI
THASHOK"ony
out
ube
Ques14:Whendemandf
orani
nfer
iorgoods
i
ncrease?
A)i
fbuy
er'
sincomei
ncr
ease
B)I
fbuy
er'
sincomegoesdown
C)I
fbuy
erl
ikei
nfer
iorgoods
D)Al
loft
heAbov
e

Ques15:Byaddi
ngtogethert
hequantit
ies
demandedbyal
lindi
vi
dualsateachpr
ice,We
wil
lget
A)Suppl
yCur
ve
B)Mar
ketDemandcur
ve
C)Demandcur
ve
D)None

Joi
nCAI
IBWI
THASHOKonYouTube
Ques16:I fpri
ceofcommodityi
ncreasesbut
sti
llthedemandforthecommodit
yis
i
ncr easi
ngthenwhateff
ecti
thasondemand
curve.
A)i
twi
llshi
ftf
rom r
ightt
olef
t
B)I
twi
llshi
ftf
rom upsi
det
odown
C)I
twi
llshi
ftf
rom l
eftt
ori
ght
D)Al
loft
heabov
e

Ques17:Suppl
ycur
vehaswhi
chki
ndofsl
op
A)Downwar
d
B)Nosl
op
C)Upwar
d
D)Al
loft
heabov
e

Joi
n"CAI
IBWI
THASHOK"ony
out
ube
Ques18:I
fthepr
iceofacommodityi
ncr
eases
t
henthedemandofit
ssubst
it
utecommodit
y
wil
l
A)Godown
B)Noef
fect
C)
Wil
lnoti
ncr
ease
D)GoUp

ANSWERS:
1-
B 9-
B 17-
C
2-
C 10-
A 18-
D
3-
C 11-
B
4-
B 12-
A
5-
D 13-
D
6-
D 14-
B
7-
A 15-
B
8-
D 16-
C