Factors Determining Demand
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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 (C)</p> Signup and view all the answers

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

<p>Own price of the commodity (D)</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 (C)</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 (A)</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 (C)</p> Signup and view all the answers

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

<p>Normal goods (A)</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 (C)</p> Signup and view all the answers

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