When the price of a substitute of commodity X falls, the demand for X:
Options
ARises
BFalls
CRemains unchanged
DAny of the above
For any discrepancies in this question, email contact@cadada.in
Theory of Demand and SupplyPYQ - June 2023Question 33 of 20
All Questions Correct Answer
✅ Option b — Falls
All Options:
- ARises
- BFalls
- CRemains unchanged
- DAny of the above
About This Chapter: Theory of Demand and Supply
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Law of Demand/Supply, Elasticity, Consumer Behavior
One of the most important chapters in the entire CA Foundation Economics paper. It covers the Law of Demand, Law of Supply, Elasticity of Demand (Price, Income, and Cross), Consumer Behavior (Cardinal and Ordinal approaches), and the concept of Consumer Surplus. Understanding demand and supply curves and their shifts is essential for grasping market dynamics.
View Official ICAI SyllabusExam Strategy Tip
Master the difference between 'Change in Demand' (shift) and 'Change in Quantity Demanded' (movement). This distinction alone can secure 3-5 marks. Also practice Elasticity numerical calculations.
Related Comparison Tables
More Questions from Theory of Demand and Supply
Demand for a commodity refers to:
Contraction of demand is the result of:
All but one of the following are assumed to remain the same while drawing the demand curve for a commodity. Which one is it?
Which of the following pairs of goods is an example of substitutes?
In the case of a straight line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be:
The Law of Demand, assuming other things to remain constant, establishes the relationship between:
Ready to Master Theory of Demand and Supply?
Practice all 20 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free