15 Questions
What are the five factors that determine demand for a commodity?
The five factors that determine demand for a commodity are desire, willingness to buy, ability to buy, price, and point of time.
What is the most important determinant of the demand for a commodity?
The most important determinant of the demand for a commodity is its price.
How does the demand for a commodity depend on the tastes and preferences of a consumer?
To a considerable extent, demand for a commodity depends on the tastes and preferences of a consumer.
Explain how the demand for a commodity changes when its price falls.
When the price of a commodity falls, the demand for it expands as rational consumers tend to buy more.
What are the other determinants of demand, besides price?
The other determinants of demand include tastes and preferences of a consumer.
What are the three magic words that are often used by economists to describe the heart of market transactions?
supply, demand, price
What determines the price of a good or service in a market?
supply and demand
What factors determine supply and demand in a market?
technology and the conditions under which people operate
What are the two extreme scenarios that can exist in a market?
a large number of virtually identical sellers and buyers or only one seller and one buyer
What is the link between supply and demand and the determination of price?
The price of a good or service is determined by the interaction of supply and demand in a market.
What are the determinants of supply and demand in a market?
Technology and the conditions under which people operate.
Explain the two extreme scenarios that can exist in a market.
One extreme is a market populated by a large number of virtually identical sellers and buyers. The other extreme is a market with only one seller and one buyer.
What are the three magic words often used by economists to describe the heart of market transactions?
Supply, demand, price.
What are the three words that captured the French Revolution?
Liberty, equality, fraternity.
What are the three words that are at the heart of the U.S. Declaration of Independence?
Life, liberty, happiness.
Test your knowledge on the factors that affect demand and determine the quantity of a commodity a buyer desires to purchase. Learn about the five essential factors that define demand and how they influence the willingness and ability to buy at a specific price and point in time.
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