Law of Demand and Elasticity Quiz

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Questions and Answers

What does the law of demand state?

As the price of a good decreases, the quantity demanded increases, ceteris paribus
As the price of a good decreases, the quantity demanded decreases, ceteris paribus
As the price of a good increases, the quantity demanded decreases, ceteris paribus (correct)
As the price of a good increases, the quantity demanded increases, ceteris paribus

What are the determinants of demand according to the text?

Price of the commodity, level of income, and taste & preferences of consumers
Price of the commodity, price of related commodities, level of income, taste & preferences of consumers, and other factors (correct)
Price of the commodity, level of income, and price of related commodities
Price of the commodity, level of income, and government policies

What is the relationship between demand and price of related commodities?

The price of related commodities and the demand for a particular commodity move in the same direction
The price of related commodities has no impact on the demand for a particular commodity
The price of related commodities and the demand for a particular commodity move in opposite directions
The price of related commodities can influence the demand for a particular commodity (correct)

How is demand defined in the context of economics?

<p>Demand refers to the quantities of commodity that consumers are able to buy at each possible price during a given period of time, ceteris paribus (A)</p> Signup and view all the answers