2. 1. Microeconomics deals with the study of
__________economic entities.
a. Aggregate
b. Individual
c. Macro
d. Socio
6. When the Government prints too much money,
prices _______
a. Rise
b. Fall
c. Remains constant
d. Becomes zero
2. Macroeconomics deals with _________economic
entities.
a. Aggregate
b. Individual
c. Micro
d. Socio
7. In short run, there is _______ relationship between
inflation and unemployment.
a. Direct
b. Inverse
c. no
d. Positive
3. Resources have __________ uses.
a. Limited
b. Unlimited
c. Alternative
d. Particular
8. _________ is a state where there is rise in general
price level.
a. Deflation
b. Depression
c. Prosperity
d. Inflation
4. People respond to ____________.
a. Incentives
b. Consumption
c. Investment
d. Saving
9. An _________ is something that induces a person
to act.
a. Investment
b. Interest
c. Incentive
d. Income
5. A country’s _________depends on its ability to
produce goods and services.
a. Demand
b. Standard of living
c. Investment
d. Policy
10. Normative Economics is based on __________. a.
Moral values
b. Facts
c. Numbers
d. Diagrams
3. Topics :Demand
Learning Objectives:
To define the term demand.
To specify the law of demand.
To identify the factors which affect the
demand of the consumers.
4. Demand
In general sense, to desire to get something is
called demand.
The condition of demand:
1. To desire to get the commodity.
2. Ability to purchase the commodity.
3.Willing to spend money.
Demand is that amount of goods and services
which is purchased by a consumer at a given
price at a given time.
5. Law of demand :
Law of demand states that when price increases
then demand decreases and vice versa if all
other things are constant.
All other things are :
1. Income
2. Tendency of saving.
3. Test and preference.
6. Demand Schedule:
When the law of demand is express by a table is
called the demand schedule.
Price (taka) Quantity (Unit)
2 12
4 10
6 8
8 6
10 4
7. Factors affecting demand
1. Own price of the commodity :
When the price of the commodity increases
then the demand decreases. When the price of
the commodity decreases then the demand
increases.
8. Factors affecting demand
2. Price of related goods:
Substitute goods :
when the price of one good increases, then
demand for other goods increases. These two
goods are called substitute goods.
Ex : tea-coffee, pen –pencil etc.
Complementary goods :
when the price of one good increases, then
demand for other goods decreases. These two
goods are called complementary goods.
Ex : ink-pen, petrol-car etc
9. Factors affecting demand
3. Income of the consumers :
When the income of the consumers increases,
then the demand increases. When the income
of the consumers decreases, then the demand
decreases.
4. Taste and preference of the consumers :
T ( ↑ ) − 𝐷 ( ↑ ), T ( ↓ ) − 𝐷 ( ↓ ) .
10. Factors affecting demand
5. Saving pattern of the consumers:
S ( ↑ ) − 𝐷 ( ↓ ) , S ( ↓ ) − 𝐷 ( ↑ ) .
6. Age structure of the consumers :
11. Factors affecting demand
7. Future expectation of the consumers :
If future price will increase comparing present, then
the consumer want to purchase that product more
in the present time. Thus, demand will be increase
in the present time and decreases in the future time.
8. Number of Buyers :
When the number of buyers increase then the
demand increase and when the number of buyers
decreases then the demand decreases.
