# Bank Promotion Mock Test-08

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Welcome to your Bank Promotion Mock Test-08

Only one of the five options given with the following questions is correct. Please identify the correct answer by putting a tick mark against it 1. According to the Law of Demand,

2. The goods which do not obey the law of demand i.e where demand goes up with the increase in prices are called

3. Inferior goods are those

4. The law of demand establishes a relationship between price and demand qualitatively. The quantitative measurement of the same is done by the concept of

5. Elasticity of demand measures the :

6. Read the following statements carefully and answer the question that follows : (i) When quantity demanded of a commodity decreases less than the proportion in which its price rises such a good is said to have inelastic demand. (ii) When quantity demanded of a commodity decreases more than the proportion in which the price rises such a good is said to have elastic demand (iii) When the proportion change in quantity demanded of a commodity is in equal proportion to the change in its price , such a commodity is said to have unit elasticity. Please indicate which of the following answers is correct

7. Income elasticity of demand measures

8. Cross elasticity of demand measures.

9. Read the following statements carefully and answer the question that follow (i) Effect on the quantity demanded of a commodity due to change in price is known as the Price- effect. (ii) Price effect is made up of income effect and and substitution effect (iii) Income effect is that component of the price effect that results in change in demand of a commodity due to change in real income of a consumer (iv) Substitution effect is that component of price effect where quantity demanded changes due to relative changes in prices of substitute commodities. Please indicate which of the following statements are correct

10. By marginal utility of a commodity we mean :