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JAIIB IE&IFS Unit 13 — Supply and Demand: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 13 — Supply and Demand (Module B — Economic Concepts Related to Banking). The Mock Centre holds 51 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module B51 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Demand schedule = price↔quantity-bought table; law of demand: price up → buy less; curve slopes down (NW→SE).
  2. Two reasons: substitution effect (dal→vegetables) + income effect (petrol squeeze); market curve = horizontal summation; diminishing marginal utility underpins the slope.
  3. Demand forces: average income, market size (Mumbai vs Bhubaneswar), related-goods prices, tastes, special influences, expectations — NOT production cost.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
A DEMAND SCHEDULE shows the:
Why (b): A DEMAND SCHEDULE is a table showing the RELATIONSHIP BETWEEN PRICE AND QUANTITY BOUGHT — how much people purchase at each price level.
Question 2 of 5
Per the law of demand, when price RISES (ceteris paribus):
Why (b): The law of demand: when price RISES (other things equal), buyers BUY LESS — the inverse price-quantity relationship.
Question 3 of 5
The demand curve slopes:
Why (b): The demand curve slopes DOWNWARD — falling from left to right: higher price, lower quantity.
Question 4 of 5
Producers supply commodities for:
Why (c): Producers supply commodities FOR PROFIT — the motive that connects price to quantity supplied: higher prices, fatter margins, more production.
Question 5 of 5
AT equilibrium, the market has:
Why (c): AT equilibrium the market has NEITHER SHORTAGE NOR SURPLUS — everything offered is bought; the market clears.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Demand curveSupply curveDownward vs upward slope
Substitution effectIncome effectSwitching vs purchasing-power channel
Practise all 51 questions on Unit 13. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 12: Fundamentals of Economics — Micro, Macro & Types of Economies · Unit 14: Money Supply and Inflation → · All IE&IFS units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.