18 Questions
What is the relationship between the demand for labour and the demand for goods?
They are directly related
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?
Composite demand
What is the main idea behind the law of diminishing marginal utility?
As more units of a good are consumed, the satisfaction decreases
How does the demand curve typically slope according to the information provided?
Downwards
What is the impact on the demand for cars if the demand for the labor to produce those cars increases?
Demand for cars increases
When consumers are willing to pay less for a good, what concept from the text is being illustrated?
Diminishing marginal utility
What happens to the demand for a good if the population increases?
The demand increases
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
How does an increase in consumer disposable income impact demand?
The demand increases as consumers can afford more goods
What factor can lead to an increase in consumer loyalty to a good and subsequently increase demand?
Advertising
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
Which factor is responsible for changes in demand based on future price expectations?
Expectations
What is demand?
The quantity of a good or service that consumers are able and willing to buy at a given price
What happens when the price of a good decreases according to the text?
Consumer demand increases
What does an outward shift in the demand curve indicate?
Lower price and higher quantity demanded
What causes movements along the demand curve according to the text?
Changes in price leading to changes in quantity demanded
Which of the following factors does NOT affect shifting the demand curve according to the text?
Price fluctuations
What does PIRATES mnemonic stand for in relation to shifting the demand curve?
Factors affecting demand
Explore the key factors that influence demand in economics, including population size, income levels, and related goods. Understand how changes in these factors can impact consumer behavior and market demand.
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