CUET-PG SERIES Economics
Demand Analysis
9 previous year questions.
Volume: 9 Ques
Yield: Medium
High-Yield Trend
1
2025 8
2023 Chapter Questions 9 MCQs
01
PYQ 2023
easy
economics ID: cuet-pg-
An industry has two firms. They face an inverse demand function P=200-4Q and a constant unit cost of Rs.8.0. The Cournot duopoly equilibrium price (P) and Quantity (Q) will be
1
8, 48 respectively
2
72, 32 respectively
3
104, 24 respectively
4
8, 24 respectively
02
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: In case of substitute commodities and , both partial marginal demand of and are positive, where means partial marginal demand of with respect to and means partial marginal demand of with respect to
Reason R: In case of substitute commodities, increase in price of one of them causes an increase in demand for the other provided the price of the other commodity is held fixed.
In the light of the above statements, choose the correct answer from the options given below.
Assertion A: In case of substitute commodities and , both partial marginal demand of and are positive, where means partial marginal demand of with respect to and means partial marginal demand of with respect to
Reason R: In case of substitute commodities, increase in price of one of them causes an increase in demand for the other provided the price of the other commodity is held fixed.
In the light of the above statements, choose the correct answer from the options given below.
1
Both A and R are true and R is the correct explanation of A
2
Both A and R are true but R is NOT the correct explanation of A
3
A is true but R is false
4
A is false but R is true
03
PYQ 2023
easy
economics ID: cuet-pg-
The demand for money L=0.25 Y and the supply of money =500. In this case
1
the LM curve is vertical and defined by Y = 2000 and this defines the classical case
2
the LM curve is vertical and defined by Y=125 and this defines the case of liquidity trap
3
the LM curve is upward sloping and defined by Y = 2000
4
the LM curve is horizontal and defined by Y = 2000 and this is a case of liquidity trap
04
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A: General equilibrium is attained in an economy when demand equals supply in all markets simultaneously.
Reason R: In a general equilibrium model, relative prices cannot be determined.
In the light of the above statements, choose the most appropriate answer from the options given below:
Assertion A: General equilibrium is attained in an economy when demand equals supply in all markets simultaneously.
Reason R: In a general equilibrium model, relative prices cannot be determined.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both A and R are correct and R is the correct explanation of A
2
Both A and R are correct but R is NOT the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct
05
PYQ 2023
medium
economics ID: cuet-pg-
Given below are two statements :
Statement-I : When the demand curve shifts if the supply curve is steeper, then the price change is larger and the change in the amount bought and sold is smaller, as compared to the flatter supply curve.
Statement-II: When the supply curve shifts if the demand curve is steeper, then the price change is larger and the change in the amount bought and sold is smaller, as compared to the flatter demand curve.
In the light of the above statements, choose the correct answer from the options given below:
Statement-I : When the demand curve shifts if the supply curve is steeper, then the price change is larger and the change in the amount bought and sold is smaller, as compared to the flatter supply curve.
Statement-II: When the supply curve shifts if the demand curve is steeper, then the price change is larger and the change in the amount bought and sold is smaller, as compared to the flatter demand curve.
In the light of the above statements, choose the correct answer from the options given below:
1
Both Statement I and Statement II are true
2
Both Statement I and Statement II are false
3
Statement I is true but Statement II is false
4
Statement I is false but Statement II is true
06
PYQ 2023
medium
economics ID: cuet-pg-
A kinked demand curve under oligopoly necessarily implies
A. a discontinuity in the marginal revenue schedule
B. a gap in the marginal cost schedule
C. formal collusion in price determination
D. the price need not be above marginal revenue
Choose the most appropriate answer from the options given below:
A. a discontinuity in the marginal revenue schedule
B. a gap in the marginal cost schedule
C. formal collusion in price determination
D. the price need not be above marginal revenue
Choose the most appropriate answer from the options given below:
1
A and B only
2
A only
3
C and D only
4
A and D only
07
PYQ 2023
medium
economics ID: cuet-pg-
According to the Baumol-Tobin transaction demand for money approach, the optimum number of transactions is
1
inversely related to income and directly related to transaction costs and interest rate
2
directly related to interest rate and income and inversely related to transaction costs
3
inversely related to income, interest rate and transaction costs
4
directly related to income, interest rate and transaction costs
08
PYQ 2023
medium
economics ID: cuet-pg-
If the inverse demand function is P=A-BQ, where A and B are positive constants, what is the elasticity at Q = ?
1
-B
2
3
2A
4
1
09
PYQ 2025
medium
economics ID: cuet-pg-
The decision by consumers to buy larger quantities of a good at each possible price cannot be caused by:
1
An increase in the number of buyers
2
A favourable change in the consumer tastes
3
Consumer expectation that the prices will be higher in the future
4
Rising incomes if it is an inferior good