Question

Q.5 It refers to change in demand for one commodity owing to change in price of

other commodity Identify the term.

(a) Cross Price Effect (b) Cross Demand Effect

(c) Elasticity of Demand (d) Elasticity of price

(1)

Q.6 How will a rational consumer react under the following situations.

(a) He will reduce the consumption of good X.

(b) He will reduce the consumption of good Y.

(c) He will reduce the consumption of both the goods.

(d) He will increase consumption of good X only.

(1)

Q.7 If price of goods- X rise and this leads to decrease in demand for goods-Y how are

the two goods related?

(a) X and Y are substitute goods.

(b) X and Y are complementary goods.

(c) x and Y are inferior goods.

(d) X and Y are supplementary goods

(1)

Q.8 A consumer has total money income of 150 to be spent on two goods X and Y

with prices of Rs 25 and Rs 10 per unit respectively. On the basis of the

information given. Answer the following questions.

(i) what is the value of slope of the budget line?

(a) (-) 2.5

(b) +2.5

(c) Both (a) and (b)

(d) None of above

(1)​

Answer 1

Answer:

(5) Elasticity of demand

(6) He will reduce the consumption both the goods goods

(7) x and Y are substitute goods

Thanks......