please tell me the right answer of the following questions and also mention the reason for the better understanding..
Q1 all but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. which one is it?
a) the preference of the individual
b) his monetary income
c) price
d) price of related goods
Q2 Given the following four possiblities, which one results in an increase in total consumer expenditures?
a) demand is unitary elastic and price falls
b) demand is elastic and price falls
c) demand is inelastic and price falls
d) demand is inelastic and price rises
Q3 which of the following statement is incorrect?
a) an indifference curve must be downward-sloping to the right
b) convexity of a curve implies that the slope of the curve dimnishes as one moves from left to right.
c) the elasticity of substitution between two goods to a consumer is zero
d) the total effect of a change in the price of a good on its quantity demanded is called the price effect
Q4 apple juice and orange juice are substitutes in consumption and apple juice and apple sauce are subtitutes in production. if the price of orange juice_________ or the price of apple sauce_________, then the price of apple juice will________
a) increases; increases; increase
b) decreases; decreases; increase
c) dereases; increases; decrease
d) increases; decreases; increase
Q5 teh goods that exhibit direct price-demand relationship are called:
a) giffen goods
b) complementary goods
c) substitute goods
d) none of the above
Q6 if the supply of the bottles water decrease, the equilibrium price__________ and the equilibrium quantity________
a) increases; decreases
b) decreases; increases
c) decreases; decreases
d) increases; increases
guys i dont have strong base in economics but i'm trying my best in understanding the topics. as i'm not taking any kind of tutions the only way to clear my doubts is through this site. guys i'm sure with ur help i'm gona clear most of my doubts...thanku in advande.
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