Podcast
Questions and Answers
What is the relationship between the price of a commodity and its demand?
What is the relationship between the price of a commodity and its demand?
- Randomly related
- Inversely proportional (correct)
- No relationship
- Directly proportional
Which term describes goods that are consumed together and have an increase in demand for one causing an increase in demand for the other?
Which term describes goods that are consumed together and have an increase in demand for one causing an increase in demand for the other?
- Normal goods
- Substitute goods
- Complementary goods (correct)
- Superior goods
What happens to the demand for petrol when the price of petrol-driven cars falls?
What happens to the demand for petrol when the price of petrol-driven cars falls?
- No change in petrol demand
- Depends on other factors
- Increase in petrol demand (correct)
- Decrease in petrol demand
What term refers to goods that can be used in place of each other?
What term refers to goods that can be used in place of each other?
Which factor is a key determinant of a commodity's demand?
Which factor is a key determinant of a commodity's demand?
What is the likely impact on the demand for computer software if the price of computers decreases?
What is the likely impact on the demand for computer software if the price of computers decreases?
In the context of substitutes, what happens to the demand for a product when the price of its substitute decreases?
In the context of substitutes, what happens to the demand for a product when the price of its substitute decreases?
How does a decrease in disposable income generally affect the quantity demanded of goods?
How does a decrease in disposable income generally affect the quantity demanded of goods?
What type of goods are demanded in increasing quantities as consumers' income increases?
What type of goods are demanded in increasing quantities as consumers' income increases?
How does an increase in the price of a complementary good affect the demand for the good in question?
How does an increase in the price of a complementary good affect the demand for the good in question?