Question

1- There is an increase in the income tax rate announced by the government in the new budget. This is expected to _____________ overall demand in the economy.

2- The coke manufacturers take back the discount scheme given earlier on coke prices. This will _____________ demand for coke.


3- With more competition among manufacturers, prices of electronic good have fallen in recent years, leading to a _____________ in demand for electronics.


4- Many people felt that the 60 inch T.V, was too highly priced and hence stopped buying it. This led to a _____________ in demand.

Answer 1

1. increase
2. decrease
3. high
4. fall