CLASS :XI SUBJECT: ECONOMICS

ASSIGNMENT (UNIT 2- LAW OF DEMAND) DATE:

1. Define demand.
2. Define demand function.
3. Define demand curve.
4. Define demand schedule.
5. What does ceteris peribus mean?
6. What are the factors affecting individual demand?
7. Define substitute goods and complimentary goods.
8. Define inferior goods and normal goods.
9. What is the nature of good where demand decreases with rise in income of the
consumer?
10. Due to a rise in the price of good x, the demand for good y falls, what type of
commodity they are?
11. Due to a rise in the price of the commodity x, demand for y also rises, what type of
commodity are they?
12. Explain the concept of cross price effect.
13. Does fall in income have same effect on demand for the commodity? Explain.
14. A new steel plant comes up in Jharkhand, many people who were previously
unemployed in the area are now employed, how will this affect the demand curve for
TVs?
15. In order to encourage tourism in Goa, Indian airlines reduces the airfares to Goa,
how will it affect the market demand for air travel to Goa?
16. There are train and bus services between New Delhi and Jaipur. Suppose the train
fare between the two cities comes down, how will this affect demand curve for bus
travel between the two cities?
17. State true or false, give reasons:
a. an increase in the price of Coke would result in decrease in demand for Pepsi
b. an increase in price of Sugar would result in increase in demand for Tea.
c. an increase in the income of the consumer would result in an increase in demand
for all types of goods, demanded by the consumer.
d. in case of inferior goods, law of demand fails.
18. A piece of goods is ‘inferior’ for one and at the same time, ‘normal good’ for another
consumer. defend or refute.
19. Why market demand curve is flatter?
20. Why does the demand curve slope downward?
21. Explain the law of demand.
22. Suppose there are two consumers and their demand function are as follows:
d(p)=20-p for any price less than or equal to 15, d(p)=0 for any price greater than 15
d’(p)=30-2p for any price less than or equal to 15, d(p)=0 for any price greater than 15.
 calculate market demand function.
23. Law of demand is qualitative statement. comment.
24. Give reasons that the law of demand doesn’t hold true when the prices are expected
to go up further?
25. Explain the concept of movement along the demand curve.
26. What does downward movement along the same demand curve imply?
27. What does upward movement along the same demand curve imply?
28. Explain the concept of shift in demand curve.
29. State any 3 factors that lead to increase in demand.
30. State any three factors that cause leftward shift of demand curve.
31. Differentiate between decrease in demand and contraction of demand.
32. Differentiate between increase in demand and extension of demand.
33. What does a downward/ upward sloping movement along a demand curve indicate?
34. When does a consumer buy more at a same price?
35. Define giffen goods.
36. What is the relationship between price effect, income effect and substitution effect?
37. What is the effect on total expenditure when demand is elastic and price of the
commodity falls?
38. How does change in price of related goods affect the demand for a commodity?
39. Differentiate between change in quantity demanded and change in demand.
40. An increase in price of commodity always result in increase in expenditure on it.
Explain.
41. Why does demand curve slope downward from left to right. Explain.
42. Does a fall in price of a commodity always result in increase in quantity demanded.
Explain.
43. Does an increase in income of a consumer always result in rise in demand for all
commodities?
44. State law of demand. Why does it operate?
45. How the following affect the demand curve :
(a)decrease in price of substitute goods ,
(b)commodity is in fashion,
(c) prices are expected to fall in future.