The Law of Demand Quiz
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Questions and Answers

What happens to quantity demanded when price increases, according to the law of demand?

  • It increases
  • It remains constant
  • It fluctuates randomly
  • It decreases (correct)
  • Which of the following factors does NOT affect the demand for a product?

  • Price of the product (correct)
  • Price of substitute goods
  • Consumer preferences
  • Income of consumers
  • If the price of smartphones decreases, what is likely to happen to the demand for smartphone cases?

  • It increases (correct)
  • It decreases
  • It has no relation to the price of smartphones
  • It remains constant
  • Study Notes

    Law of Demand

    • When price increases, quantity demanded decreases, ceteris paribus (all other things being equal).

    Factors Affecting Demand

    • Several factors can affect the demand for a product, but one factor that does not affect demand is a change in the price of the same product.

    Price of Complementary Goods

    • If the price of a complementary good (e.g., smartphones) decreases, the demand for another complementary good (e.g., smartphone cases) is likely to increase.

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    Description

    Test your understanding of the law of demand with this quiz. Learn about the relationship between price and quantity demanded, and identify factors that do not affect product demand. See how changes in price can impact the demand for related products.

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