5 Questions
Why is the demand curve downward sloping?
Due to the income and substitution effects
What is the effect of an increase in the price of strawberries on the consumer's real income?
It decreases the real income
Which of the following is a factor that influences market demand?
Expectations of future prices
What is the term for the change in the quantity demanded of a good in response to a change in the price of a related good?
Change in demand due to a related good
What is the policy that reduces the cost of a good to the consumer, increasing the demand for it?
Direct subsidy policy
Understand the reasons behind the downward sloping demand curve, including the substitution and income effects. Learn about the various factors that influence market demand, such as taste and preference, real income, and prices of related goods. Test your knowledge of microeconomics concepts!
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