Economics Tester

What is Demand?

The law of demand states that:

• If the demand is more than the supply and prices are low, consumers will buy more of the commodity.

• The law of demand states that if all other factors affecting demand remain constant, the buyers will buy more quantity of a commodity at lower price and less of it at a higher price

• The law of demand states that if all other factors affecting demand increase, the buyers will buy more quantity of a commodity at high price and less of it at a low price

• If the supply is more than the demand and prices are high, consumers will buy less of the commodity.

Who is considered the father of economics?

• Robert Oppenhiemer

• Charles Babbage

• Galileo Galilei

• Adam Smith

What causes imbalances of demand & supply?

• Consumer's Budget

• Disequilibrium Situation & prices.

• Unequal Demand and Supply.

• Various factors such as changes in consumer preferences, government policies, money shortage, and economic conditions.

When Demand decreases, but supply remains same, the price of the commodity:

• Increases

• Falls

• Remains same

• None

Imbalances and Cascading effects of Demand & Supply affect:

• Globe

• Country's Economy

• SDG's or Sustainable Development Goals

• USA

Draw the Supply Curve:

Wants cannot be changed to demands unless and until:

• The person has adequate money and willingness to buy.

• The person has not adequate money.

• The person's age is not eligible for the good

• The good is available in the market.