Giffen Goods are
inferior goods and so they do not occupy a significant place in the consumption
basket of an individual. Ans.
False
A rightward or
leftward shift of the demand curve occurs due to change in price of the
product. Ans. False
A rise in the
price of raw materials used in production shift the supply curve to the left. T
Demand for the
substitutes move in the opposite direction. T
Consumers are
influenced by observing the behaviour of others in case of items of snob
appeal. T
When demand
increases, supply being constant, new equilibriy=um price will be higher than
the earlier one. T
If the quantity
supplied exceeds quantity demanded producers will increase the price of that
commodity. F
With increase in
income , consumers tends to replace inferior goods with superior goods. T
When price of a
commodity rises, the real income of a
consumer is increased. F
Positive income elasticity implies positive price elasticity. T
Slopes of
indifference curve bears relation with diminishing marginal utility. T
A concave
indifference curve implies that marginal rate of substitution decreases along
the curve. F
A feasible
purchase of commodity bundle can never lie under the budget line F
The law of
diminishing Marginal utility holds good for items of addiction. F
If the utility
from commodity A is more than that from another commodity B, then the consumer
would increase consumption of B and reduce the consumption of A. F
Convexity
implies that a curve is bowed away from the origin. F
A higher indifference
curve implies more quantities of both goods.
F
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