Podcast
Questions and Answers
What is the relationship between price and quantity demanded?
What is the relationship between price and quantity demanded?
- Fluctuating relationship
- No relationship
- Direct relationship
- Inverse relationship (correct)
Which term represents goods that can be used in place of one another for satisfaction of a particular want?
Which term represents goods that can be used in place of one another for satisfaction of a particular want?
- Normal goods
- Complementary goods
- Substitute goods (correct)
- Luxury goods
What happens to the demand for a commodity when the price of its substitute increases?
What happens to the demand for a commodity when the price of its substitute increases?
- Demand becomes elastic
- No change in demand
- Demand decreases
- Demand increases (correct)
How does a decrease in the price of a substitute affect the demand for a given commodity?
How does a decrease in the price of a substitute affect the demand for a given commodity?
Which economic principle describes the inverse relationship between price and demand?
Which economic principle describes the inverse relationship between price and demand?
What is the mathematical expression for demand as a function of price?
What is the mathematical expression for demand as a function of price?
How does an increase in the price of a complementary good affect the demand for a given commodity?
How does an increase in the price of a complementary good affect the demand for a given commodity?
Which of the following is an example of complementary goods mentioned in the text?
Which of the following is an example of complementary goods mentioned in the text?
How does a decrease in income affect the demand for an inferior good?
How does a decrease in income affect the demand for an inferior good?
What determines whether a good is normal or inferior for a consumer?
What determines whether a good is normal or inferior for a consumer?
How do tastes and preferences of the consumer influence demand?
How do tastes and preferences of the consumer influence demand?
Which of the following examples are substitute goods according to the text?
Which of the following examples are substitute goods according to the text?
