Questions and Answers
What is the relationship between the price of a commodity and its demand?
Inversely 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?
Complementary goods
What happens to the demand for petrol when the price of petrol-driven cars falls?
Increase in petrol demand
What term refers to goods that can be used in place of each other?
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Which factor is a key determinant of a commodity's demand?
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What is the likely impact on the demand for computer software if the price of computers decreases?
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In the context of substitutes, what happens to the demand for a product when the price of its substitute decreases?
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How does a decrease in disposable income generally affect the quantity demanded of goods?
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What type of goods are demanded in increasing quantities as consumers' income increases?
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How does an increase in the price of a complementary good affect the demand for the good in question?
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