Law of Demand and Determinants Quiz
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Questions and Answers

According to the law of demand, what happens to the quantity demanded as the price of a good or service increases?

  • It fluctuates
  • It decreases (correct)
  • It increases
  • It remains the same
  • Which of the following is a determinant of demand related to changes in consumer habits and preferences?

  • Level of Taxation
  • Advertisement
  • Taste, Habits, and Fashions (correct)
  • Price of Complementary Goods
  • What effect does effective advertisement and sales promotion have on the demand for a product?

  • It fluctuates the demand
  • It leads to greater demand (correct)
  • It has no effect on demand
  • It decreases the demand
  • How does income level influence the demand for a commodity?

    <p>Rise in income leads to a rise in demand</p> Signup and view all the answers

    What is the relationship between price of a commodity and its demand according to the law of demand?

    <p>Demand varies inversely with price</p> Signup and view all the answers

    Which type of demand refers to the demand for goods required for further production?

    <p>Indirect Demand</p> Signup and view all the answers

    Which type of demand involves the simultaneous demand for two or more goods to satisfy a single want?

    <p>Joint or Complementary Demand</p> Signup and view all the answers

    Which type of demand involves a commodity that can be utilized for several needs or multiple uses?

    <p>Composite Demand</p> Signup and view all the answers

    Which type of demand involves goods that are substitutes for each other?

    <p>Competitive Demand</p> Signup and view all the answers

    Which type of demand refers to the direct satisfaction of a consumer's want by a commodity?

    <p>Direct Demand</p> Signup and view all the answers

    What type of demand involves the simultaneous demand for two or more goods to satisfy a single want?

    <p>Joint or Complementary Demand</p> Signup and view all the answers

    Which type of demand involves goods that are substitute for each other?

    <p>Competitive Demand</p> Signup and view all the answers

    What type of demand refers to the demand for goods required for further production?

    <p>Indirect Demand</p> Signup and view all the answers

    Which type of demand involves a commodity that can be utilized for several needs or multiple uses?

    <p>Composite Demand</p> Signup and view all the answers

    What type of demand refers to the direct satisfaction of a consumer's want by a commodity?

    <p>Direct Demand</p> Signup and view all the answers

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