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Aarambh 2.0_2024 Batch

Theory of Demand DPP-01

1. Law of demand states the _________ relationship 8. Read the following Statements: Assertion (A) and
between price and quantity demanded, keeping other Reason (R). Choose one of the correct alternatives
factors constant. given below:
Assertion (A): Complementary goods have joint
2. ________ goods are those goods which can be used demand
in place of one another for satisfaction of a Reason(R): Complementary goods are demanded
particular want. simultaneously to satisfy a particular want
(1) Both Assertion (A) and Reason (R) are True
3. Complementary goods have _________ demand. and Reason(R) is the correct explanation of
Assertion (A)
4. Which of the following is an example of (2) Both Assertion (A) and Reason (R) are True
complementary goods? and Reason (R) is not the correct explanation
of Assertion (A).
(1) Tea and Coffee (2) Coke and Pepsi
(3) Assertion (A) is True but Reason (R) is False
(3) Rice and Wheat (4) None of these
(4) Assertion (A) is False but Reason (R) is True
5. The demand for normal good_______ with an
increase in income of the consumer. 9. Read the following statements carefully and choose
the correct alternative from the following:
(1) Increases
Statement 1: Law of Demand makes a qualitative
(2) Decreases
statement and not quantitative.
(3) Remains same
Statement 2: No Proportional relationship between
(4) Either increases or decreases
change in price and the resultant change in demand
is established by Law of Demand
6. Which one of the these is not an example of (1) Both the statements are true
substitute goods?
(2) Both the statements are false
(1) Tea and Coffee
(3) Statement 1 is true and statement 2 is false
(2) Coke and Pepsi
(4) Statement 2 is true and statement 1 is false
(3) Ink Pen and Ball Pen
(4) Bread and Butter
10. Define market demand.

7. Which of the following is not an assumption of law

of demand?
(1) Price of substitute goods do not change
(2) Income of the consumers remain same
(3) There is no change in tastes and preferences
of the consumers
(4) Price of the given commodity does not
change
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Answer Key
1. (With Discussion) 6. (4)
2. (With Discussion) 7. (4)
3. (With Discussion) 8. (1)
4. (4) 9. (1)
5. (1) 10. (With Discussion)
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Hints & Solutions

1. (H & S) 6. (4)
Inverse
7. (4)
2. (H & S)
Substitute 8. (1)

3. (H & S) 9. (1)
Joint
10. (H & S)
4. (4) Market demand refers to the quantity of a
commodity that all the consumers are willing
5. (1) and able to buy, at a particular price during a
given period of time.

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