Determinants of Demand Quiz

<p>Cost of Production</p> Signup and view all the answers

<p>The demand for goods and services increase</p> Signup and view all the answers

<p>The desire for a particular good backed up by sufficient purchasing power</p> Signup and view all the answers

<p>Weather</p> Signup and view all the answers

<p>Quantity supplied</p> Signup and view all the answers

<p>It decreases</p> Signup and view all the answers

<p>Potential demand refers to the desire for a product while effective demand refers to the desire backed up by purchasing power</p> Signup and view all the answers

<p>Potential demand is the desire for a product without sufficient purchasing power, while effective demand is the desire for a product backed up by sufficient purchasing power.</p> Signup and view all the answers

<p>The demand function represents the relationship between price and quantity demanded.</p> Signup and view all the answers

<p>Qd = a – b(P)</p> Signup and view all the answers

<p>The demand curve is a graphic presentation that explains the negative relationship between price and quantity demanded.</p> Signup and view all the answers

<p>The law of demand states that if the price is high, the quantity demanded is low and vice versa.</p> Signup and view all the answers

<p>The supply curve is a graphic presentation that explains the positive relationship between price and quantity supplied.</p> Signup and view all the answers

<p>Market equilibrium is attained at the point of intersection of the demand and supply curves, where the quantity supplied is also the quantity demanded for a certain price.</p> Signup and view all the answers

<p>The desire for a product backed up by sufficient purchasing power</p> Signup and view all the answers

<p>Qd = a - b(P)</p> Signup and view all the answers

<p>Potential demand refers to the desire for a product backed up by sufficient purchasing power, while effective demand refers to the number of products a consumer is willing to buy at a certain price.</p> Signup and view all the answers

<p>If the price is high, the quantity demanded is low and vice versa.</p> Signup and view all the answers

<p>The different quantities that are offered for sale at various prices.</p> Signup and view all the answers

<p>The mathematical equation that shows the relationship between price and quantity supplied.</p> Signup and view all the answers

<p>The point where the quantity that sellers are willing to sell is equal to the quantity that buyers are willing to buy.</p> Signup and view all the answers