2) Demand for necessary goods is income - inelastic
3) Demand for factors of production is - derived demand
4) The total demand for a commodity which can be used for various purposes - composite demand
5) A consumer has more and more of a good it's Marginal Utility to him goes on declining is - Law of diminishing marginal utility
6) The effect that a change in relative prices of substitute goods changes the quantity demanded is - substitution effect
7) Due to fall in the price of a good, consumer's real income rises and demand more units of the good - Income effect
8) The principle states that consumer will choose a combination of goods to maximize their total utility - Equimarginal Principle
9) The loss of social welfare that occurs when a market is producing at a level of output that is not socially optimal - Dead weight loss
10) The exchange rate is determined by the monetary authority - Fixed exchange rate
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