SHALOMHILLS INTERNATIONAL SCHOOL

CHAPTER – Theory of Demand

LEVEL – I

Q1. Define demand.

Q2. A downward movement along a same demand curve is due to ___________.
Q3. Distinguish between normal goods and inferior goods with examples.

LEVEL – II

Q4. State the law of demand with its schedule and curve.
Q5. Explain market demand curve with the help of a schedule.
Q6. Distinguish between substitute goods and complementary goods with example.

LEVEL – III

Q7. Explain the exceptions of law of demand.

Q8. Explain the various factors that determines the demand of a commodity. (Any five)
Q10. Assertion and Reason based question.
Choose the most suitable alternative
Assertion(A): A change in quantity demanded of one commodity is due to change in price of
another commodity.
Reason(R): Change in consumer income leads to change in quantity demanded.

Options:
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is correct but R is wrong.
d. A is wrong but R is correct.