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.

This CBSE Class 11 Economics practice quiz has 34 multiple-choice questions on Theory of Demand. Try the 5 sample questions below (tap an option to check yourself), then play the full quiz 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 questions in this quiz

Answers and explanations are in the full quiz.

1. Which of the following factors does NOT affect the demand for a product?
2. What happens to the demand curve when consumer preferences for a product increase?
3. If there is a decrease in the price of a complement good, what is likely to happen to the demand for the related good?
4. Which of the following points represents an increase in demand?
5. How does the demand for inferior goods change when consumer income rises?
6. In economic theory, how is demand elasticity defined?
7. If consumers expect the price of a good to rise in the future, what will likely happen to current demand?
8. How does the concept of diminishing marginal utility affect demand?
9. When demand is elastic, a decrease in price will lead to _____ in total revenue.
10. What happens to demand when a consumer's income increases, assuming the good is a normal good?
11. Which statement best describes the impact of a successful advertising campaign on demand?
12. If the price of a good falls, what is the expected change in its quantity demanded?
13. What does a demand curve typically show?
14. When demand is elastic, what happens to total revenue when the price decreases?
15. What is the relationship between demand and price according to the law of demand?
16. A price increase will lead to a decrease in quantity demanded assuming all else is constant. This scenario illustrates which principle?
17. If a consumer's income increases and their demand for a good also increases, the good is classified as which type?
18. If the demand curve shifts to the left, what can be deduced about the market?
19. If consumers expect prices to rise in the future, what effect will this have on current demand?
20. Suppose a new tax is imposed on a certain good. What is the likely immediate effect on its demand?
21. What happens to demand for luxury goods in a recession?
22. If the price of a good falls and the quantity demanded rises significantly, this is an example of which type of elasticity?
23. What will likely happen to the demand for a product if consumers believe it is harmful?
24. What is a Giffen good?
25. If a price increase causes a large decrease in quantity demanded, what can be said about the demand for that product?
26. How would you classify a product with very few substitutes and essential for consumers?
27. Which of the following would have a perfectly inelastic demand?
28. What is an example of a situation where demand is perfectly elastic?
29. Which type of goods will have a negative cross-price elasticity of demand?

More quizzes

• Consumer Behavior▶ Play

Browse all Microeconomics quizzes

More to play