Consumer and Market Demand

Ceteris paribus, the law of demand establishes an inverse relationship between the price of a good and its quantity demanded.

Law of Demand states that ceteris paribus, _____ falls with increase in the price.

Explain the exceptions to the law of demand.

Amongst the combination is given below, which combination of goods are known as Substitute Goods?

There is an _____ relationship between price and quantity demanded.

What kind of relationship exists between income and demand of inferior good?

Explain the law of demand and state the reasons behind it.

Under the Veblen effect, as the price of a commodity increases, consumers think that the quality of the commodity has fallen and as a result quantity demanded of the commodity decreases. 

Under ceteris paribus assumptions, price and quantity demanded of a commodity move in _____ directions.

What is law of demand?

Demand for a good is a function of _____ (organisation/price) which is the most important factor in consumer behavior.

Goods that are alternative to one another in regard to consumption are known as complementary goods.

If the price of a particular commodity increase, the consumer purchase more substitute goods than the risen products, and this is known as _____. (Substitution effect / Income effect)

_____ good is an exception to the law of demand because the consumption of certain inferior goods falls with an increase in income and vice versa. (Giffen / Normal)

Adding up two demand curves is known as a rectangular hyperbola.

Consider the demand curve D(p) = 10 – 3p. What is the elasticity at price 5/3?

Consider a market where there are just two consumers and suppose their demands for the good are given as follows: Calculate the market demand for the good.

Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?