Understanding Demand in Economics
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Questions and Answers

According to the passage, what is the essential element of demand in economics?

  • Desire for an object
  • Willingness to buy a commodity
  • Purchasing power to pay
  • All of the above (correct)

What does the passage say is the definition of demand according to Stonier and Hague?

  • The amount of a good that will be bought per unit of time at a given price
  • Demand backed up by enough money to pay for the goods demanded (correct)
  • Willingness to buy a commodity
  • Desire for an object

What are the three essential elements of demand according to the passage?

  • Commodity, money, and time
  • Desire, willingness to buy, and purchasing power
  • Stonier and Hague's definition, Benham's definition, and the definition in common parlance
  • Price, quantity demanded, and time (correct)

According to the passage, what does demand in common parlance mean?

<p>The desire for an object (C)</p> Signup and view all the answers

What is Benham's definition of demand according to the passage?

<p>The demand for anything at a given price is the amount of it which will be bought per unit of time at that Price (C)</p> Signup and view all the answers

Which of the following statements best describes the law of demand?

<p>The amount demanded increases with a fall in price and diminishes with a rise in price. (A)</p> Signup and view all the answers

Which of the following assumptions is NOT listed in the text as a requirement for the law of demand?

<p>Producers' costs should remain constant. (A)</p> Signup and view all the answers

What does the demand curve represent?

<p>The inverse relationship between price and quantity demanded. (D)</p> Signup and view all the answers

Which of the following statements is NOT true according to the text?

<p>People should expect changes in the price of the commodity. (C)</p> Signup and view all the answers

What is the shape of the demand curve?

<p>Downward sloping (D)</p> Signup and view all the answers

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