Factors Affecting Demand in Economics

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What is the relationship between the demand for labour and the demand for goods?

They are unrelated

They are inversely related

They have no relationship

They are directly related (correct)

Which concept is illustrated when an increase in demand for cheese leads to a decrease in the supply of butter due to fixed milk supply?

Joint demand

Composite demand (correct)

Diminishing marginal utility

Expansion of demand

What is the main idea behind the law of diminishing marginal utility?

As more units of a good are consumed, the satisfaction decreases (correct)

Consumers always want more of a good

The price of goods always decreases over time

Utility derived from goods is always constant

How does the demand curve typically slope according to the information provided?

Downwards Signup and view all the answers

What is the impact on the demand for cars if the demand for the labor to produce those cars increases?

Demand for cars increases Signup and view all the answers

When consumers are willing to pay less for a good, what concept from the text is being illustrated?

Diminishing marginal utility Signup and view all the answers

What happens to the demand for a good if the population increases?

The demand increases Signup and view all the answers

If the price of a substitute for a good falls, what is likely to happen to the demand for the original good?

The demand for the original good decreases Signup and view all the answers

How does an increase in consumer disposable income impact demand?

The demand increases as consumers can afford more goods Signup and view all the answers

What factor can lead to an increase in consumer loyalty to a good and subsequently increase demand?

Advertising Signup and view all the answers

If consumer tastes shift from physical books to e-books, what is likely to happen to the demand for physical books?

The demand for physical books decreases Signup and view all the answers

Which factor is responsible for changes in demand based on future price expectations?

Expectations Signup and view all the answers

What is demand?

The quantity of a good or service that consumers are able and willing to buy at a given price Signup and view all the answers

What happens when the price of a good decreases according to the text?

Consumer demand increases Signup and view all the answers

What does an outward shift in the demand curve indicate?

Lower price and higher quantity demanded Signup and view all the answers

What causes movements along the demand curve according to the text?

Changes in price leading to changes in quantity demanded Signup and view all the answers

Which of the following factors does NOT affect shifting the demand curve according to the text?

Price fluctuations Signup and view all the answers

What does PIRATES mnemonic stand for in relation to shifting the demand curve?

Factors affecting demand Signup and view all the answers

Factors Affecting Demand in Economics

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