Factors Determining Demand
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

  • Normal goods
  • Substitute goods
  • Complementary goods (correct)
  • Superior goods

    • 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?

    <p>Substitute goods</p> Signup and view all the answers

    Which factor is a key determinant of a commodity's demand?

    <p>Own price of the commodity</p> Signup and view all the answers

    What is the likely impact on the demand for computer software if the price of computers decreases?

    <p>Increase</p> Signup and view all the answers

    In the context of substitutes, what happens to the demand for a product when the price of its substitute decreases?

    <p>Increases</p> Signup and view all the answers

    How does a decrease in disposable income generally affect the quantity demanded of goods?

    <p>Decreases the quantity demanded</p> Signup and view all the answers

    What type of goods are demanded in increasing quantities as consumers' income increases?

    <p>Normal goods</p> Signup and view all the answers

    How does an increase in the price of a complementary good affect the demand for the good in question?

    <p>Decreases the demand</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser