Question

r 10 lapy Pt steng the eurve dspiotea in eure a-3. the slope of this euYe b. ineresses none of the sbove Corperatien adverties its televlalon ssta. the rightward shift of the demand aurve for ita television b. rightward shirt of the upply eurve for its televi lon e. leftward shift of the desand eurve for ite televiaion d. leftward shift of the aupply eurve for ite televialon 7. When D.01 nons of the above. An ineresse in the price of product X resulted in a decrease in the deaand-for produet r. Thi·indi eat. that produtt. x and Y are A. ubati eute goods complementary goods C. inferior goods D. superior goods E. unrelated goeds 9. According to the paradox ot value, consupsrs are villing to pay rs for diamonds than they do for vater because a. of conspicuous consuapion. b. of the increase ia income over the past years, and becaus diamonds are superior goods vhile vacer is an inferlor good d. che sacistaction derived Erom diamonds is greater chan . che additional sacisfaction derived from an extra diamond sone cannot 1ive without diamonds. chat fron vater is greater than chat Erom an xtra gallon of vater. The market demand curve for a commodity a. is the average of the individual denand curves. b. is the vertical sumnation of the individual demand curves c. is the sun of the slopes of the individual demand curves. 10. d. cannot be derived fron the individual domand curves none of the above.

Answer 1

Answer 6 : B

The graph shows a parabola which is a non-linear curve. The slope of a non-linear curve is different at different points. Since the graph shows the rising portion a parabola so the slope of the curve will increase ventually. Therefore, the answer is option B.

Answer 7 : E

When Sony Corporation advertises its television sets, both the demand and supply curves will get affected. The Demand curve will shift rightwards while the supply curve will shift leftwards leading to an increase in the equilibrium price and a decrease in the equilibrium quantity.

Demand Side :

As the company advertises, this affects the mindset of the consumers, thus there arises a change in the tastes and preferences of the consumers. As this changes in a positive way, this leads to a rise in demand of the television sets. Therefore, the demand curve shifts rightward.

Supply Side :

As the company advertises, the company has to bear some amount of cost on it. This cost leads to an increase in the cost of production for the company. This will then affect the prices of the television sets. The supply curve will shift leftwards as the supply curve is basically made up of the Marginal Cost which is increased due to the advertising cost.

So, the answer will be option E.

Answer 8 : A

Substitute goods are those goods which can be used in place of one another. If two goods are substitute to each other then there is an inverse relationship between the price of good and the demand of other good. Example - Tea and Coffee.

As given in the question, the price of good x increases resulting in the fall in demand of good y, so goods x and y are substitute goods.

So the answer is option A.

Answer 9 : A

According to the paradox of value, consumers are willing to pay more for diamonds than for water because the additional satisfaction derived from consuming one gallon of water is more than the additional satisfaction derived from buying one diamond. Consumers are just willing to pay more because of the prestigious value diamond carries with itself.

So, the answer is option A.

Answer 10 : E

The market demand curve of a commodity is the horizontal summation of the individual demand curves. Therefore, the answer is none of the above, i.e. option E.