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ICSE Class 10 Theory of Demand & Elasticity — practice questions

Explore 98 free Theory of Demand & Elasticity questions in ICSE Class 10 Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Theory of Demand & Elasticity questions and exercises with answers

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CA Foundation · Economics · Elasticity Examples — PairRead the answer and worked solution →The quantity demanded of a commodity is best described as which of the following?Read the answer and worked solution →In economics, demand refers to the desire to buy backed by what?Read the answer and worked solution →Demand is described as a flow concept because it is measured per unit of:Read the answer and worked solution →What relation normally links a commodity price to its quantity demanded?Read the answer and worked solution →What type of good is typically used together with a primary good?Read the answer and worked solution →How does a costlier complementary good affect primary commodity demand?Read the answer and worked solution →How does substitute good price relate to demand for the primary good?Read the answer and worked solution →Consumer income determines quantity demanded by establishing a consumer's:Read the answer and worked solution →If buyers anticipate higher prices in the future, current demand will:Read the answer and worked solution →Emulating the consumption patterns of peers and neighbours is known as the:Read the answer and worked solution →Unequal income distribution across a country creates greater demand for:Read the answer and worked solution →How does an increase in national population size affect market demand?Read the answer and worked solution →Imposing commodity taxes like VAT raises prices and causes demand to:Read the answer and worked solution →In an algebraic demand function, quantity demanded is treated as the:Read the answer and worked solution →Which classical economist formulated the standard downward demand curve?Read the answer and worked solution →The law of demand is considered qualitative because it describes only:Read the answer and worked solution →Which Latin phrase signifies other factors remaining constant in economics?Read the answer and worked solution →In Marshall's framework, what theory provided the demand curve formulation?Read the answer and worked solution →A drop in quantity demanded due to lower purchasing power reflects the:Read the answer and worked solution →Shifting consumption to cheaper alternatives as a good price rises is the:Read the answer and worked solution →A change in demand caused by non-price determinants is shown by a:Read the answer and worked solution →A change in quantity demanded caused solely by price change produces a:Read the answer and worked solution →What type of inferior good experiences higher demand when its price rises?Read the answer and worked solution →Which effect overpowers substitution to create the Giffen paradox?Read the answer and worked solution →High-quality luxury commodities whose demand rises with higher prices are:Read the answer and worked solution →What core relationship does price elasticity of demand capture?Read the answer and worked solution →Mathematically, the coefficient of price elasticity is:Read the answer and worked solution →Demand has unitary elasticity when a price change leads to:Read the answer and worked solution →A commodity possesses inelastic demand if its numerical elasticity is:Read the answer and worked solution →

Worked practice questions

CA Foundation · Economics · Elasticity Examples — Pair

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Matching pairs
  1. Left
    Common salt
    Right
    Highly inelastic demand
  2. Left
    Luxury car
    Right
    Highly elastic demand
  3. Left
    Petrol
    Right
    Inelastic short-run, elastic long-run
Instructions
Match each good to its likely demand elasticity.

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The quantity demanded of a commodity is best described as which of the following?

  1. A flow expressed per unit of time at a given price
  2. A single isolated stock held by the seller
  3. A fixed lifetime total independent of price
  4. A value set only by the government regulator
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Correct answer: A. A flow expressed per unit of time at a given price

1. Quantity demanded is always expressed at a given price. 2. It is a flow, not a single isolated purchase, so it is stated as 'so much per period of time'. 3. For example, one thousand dozens of oranges per day. 4. The option capturing both 'flow' and 'per unit of time at a given price' is correct. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit I "Law of Demand and Elasticity of Demand", p.2_

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In economics, demand refers to the desire to buy backed by what?

  1. ability to pay
  2. market goodwill
  3. formal permit
  4. legal sanction
Show answer and solution

Correct answer: A. ability to pay

Economic demand requires both the desire to purchase and the ability to pay.

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