Demand Analysis — Important Questions
Telangana Open School (TOSS) · Class 12 · Economics
45 important questions from Demand Analysis for Telangana Open School (TOSS) Class 12 Economics, with answers. Written for the board exams 2027.
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Important Questions from Demand Analysis
If a consumer desires a car but cannot afford it, is this considered demand?
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False
Demand requires both desire and the ability to pay. Without purchasing power, it is only a desire, not demand.
Which of the following is an example of substitute goods?
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Tea and coffee
Substitute goods satisfy the same need. When the price of one rises, demand for the other increases. Tea and coffee are classic substitutes.
What happens to the demand for a normal good when income increases?
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Demand increases
Normal goods are those for which demand increases as consumer income rises, such as branded clothes or premium cars.
Which of the following is a characteristic of the law of demand?
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Inverse relationship between price and quantity demanded
The law of demand states that as price increases, quantity demanded decreases, showing an inverse relationship.
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