Theory of Demand Quiz - CBSE Class 11 Economics

Free practice quiz: Theory of Demand (CBSE Class 11 Economics). 34 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

Sample questions

1. What does the law of demand state?

   1. As price increases, quantity demanded decreases.
   2. As price increases, quantity demanded increases.
   3. Price and quantity demanded are unrelated.
   4. Quantity demanded remains constant regardless of price.
   Show answer

   Answer: A. As price increases, quantity demanded decreases.

2. What is the effect of a price ceiling on a market for a good?

   1. Surplus of goods.
   2. Shortage of goods.
   3. Equilibrium market.
   4. No effect on supply.
   Show answer

   Answer: B. Shortage of goods.

3. What is a fundamental concept of the law of demand?

   1. Price and quantity demanded are directly related.
   2. Price and quantity demanded are inversely related.
   3. Income and quantity demanded are directly related.
   4. Substitutes and quantity demanded are inversely related.
   Show answer

   Answer: B. Price and quantity demanded are inversely related.

4. What effect does an increase in the price of a substitute good have on the demand for a targeted good?

   1. Demand decreases
   2. Demand remains unchanged
   3. Demand increases
   4. Demand becomes elastic
   Show answer

   Answer: C. Demand increases

5. The concept of diminishing marginal utility explains which aspect of consumer behavior?

   1. How consumers allocate income
   2. Why demand curves slope downwards
   3. The impact of advertising on demand
   4. Consumer preferences over time
   Show answer

   Answer: B. Why demand curves slope downwards

More quizzes

• Consumer Behavior

Browse all Microeconomics quizzes