Podcast
Questions and Answers
What is the primary motivation behind the substitution effect in the context of demand?
What is the primary motivation behind the substitution effect in the context of demand?
- To motivate consumers to buy relatively cheaper substitute goods (correct)
- To reduce the quantity demanded of goods
- To encourage consumers to buy more expensive goods
- To increase the price of goods
Which economic factor causes a shift in the demand curve rather than just a movement along it?
Which economic factor causes a shift in the demand curve rather than just a movement along it?
- Change in quantity demanded
- Change in price
- One of the shifters of demand (correct)
- Changes in technology
What economic concept explains why consumers experience less satisfaction from each additional unit of a product consumed?
What economic concept explains why consumers experience less satisfaction from each additional unit of a product consumed?
- The Law of Substitution
- The Law of Supply
- The Law of Demand
- The Law of Diminishing Marginal Utility (correct)
Which factor directly influences the quantity supplied at different prices, leading to a shift in supply?
Which factor directly influences the quantity supplied at different prices, leading to a shift in supply?
Which scenario best explains a movement along a fixed demand curve rather than a shift in demand?
Which scenario best explains a movement along a fixed demand curve rather than a shift in demand?
How does an increase in taxes generally affect the supply of goods?
How does an increase in taxes generally affect the supply of goods?
What is the term used to describe the point where demand and supply intersect in a market?
What is the term used to describe the point where demand and supply intersect in a market?
If a government enacts laws to set a maximum legal price for a good, what is this called?
If a government enacts laws to set a maximum legal price for a good, what is this called?
What concept describes abandoning an activity because of heavy prior investment, even if it is not rational?
What concept describes abandoning an activity because of heavy prior investment, even if it is not rational?
What happens to the slope of the demand curve when demand for a good increases?
What happens to the slope of the demand curve when demand for a good increases?
What does 'Ceteris Paribus' mean in economics?
What does 'Ceteris Paribus' mean in economics?
Which term describes the excess supply that occurs when the market price is above the equilibrium price?
Which term describes the excess supply that occurs when the market price is above the equilibrium price?
What does a normal good refer to?
What does a normal good refer to?
Which of the following is a shifter of demand?
Which of the following is a shifter of demand?
What is the law of demand based on?
What is the law of demand based on?
What is an inferior good?
What is an inferior good?
Which factor causes a shift in the demand curve?
Which factor causes a shift in the demand curve?
What does the law of demand explain about the relationship between price and quantity demanded?
What does the law of demand explain about the relationship between price and quantity demanded?
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