NCERT Class 9 Chapter 9: The Price Puzzle MCQs for UPSC

1. In economics, how is effective 'demand' defined, and what relationship is expressed by the Law of Demand?

1. A.Demand is the desire to buy backed by purchasing power and willingness to pay; the Law of Demand states that keeping other factors constant, price and quantity demanded have an inverse relationship
2. B.Demand is the total stock of goods held in government warehouses; the Law of Demand states that price and quantity demanded always rise together
3. C.Demand is the physical production capacity of a factory; the Law of Demand states that price is independent of consumer preferences
4. D.Demand represents non-monetary requests for public subsidies; the Law of Demand states that higher prices always create greater consumer purchases

2. What causes the individual demand curve to slope downward from left to right on a price-quantity graph?

1. A.Sellers charging higher rates when consumers buy larger quantities
2. B.The inverse relationship between price and quantity demanded, whereby consumers purchase larger quantities at lower prices
3. C.Government statutory price floors that force higher output at lower prices
4. D.Fixed annual production quotas enforced on agricultural producers

3. Why is the market demand curve generally flatter than an individual consumer's demand curve?

1. A.Because market demand excludes consumers with low purchasing power
2. B.Because individual demand curves do not account for commodity prices
3. C.Because market demand aggregates the quantity responses of all consumers in the market, producing a larger total quantity change for the same price movement
4. D.Because the market demand curve is drawn exclusively under conditions of pure monopoly