Demand Function and Elasticity Quiz

The demand increases due to higher perceived value

The demand fluctuates unpredictably

The demand decreases according to the law of demand (correct)

The demand remains constant as price and demand are unrelated

The good is a necessity with no close substitutes

Consumers are insensitive to price changes

The good is a luxury with many substitutes

Consumers are very responsive to price changes (correct)

There is no relationship between the goods

They are complementary goods (correct)

They are substitute goods

They are unrelated in the market