Understanding Demand in Economics Quiz

Play an AI-generated podcast conversation about this lesson

What does demand mean in economics?

Purchasing power only

Desire for an object

Desire backed by willingness to buy and purchasing power (correct)

Willingness to buy only

According to Stonier and Hague, what is necessary for demand to be effective?

Backed by enough money and willingness to buy (correct)

Backed by purchasing power only

Backed by willingness to buy only

Backed by desire for an object

What are the three essentials of demand in economics?

Price, quantity demanded, and time (correct)

Quantity demanded, time, and purchasing power

Price, willingness, and purchasing power

Desire, willingness, and purchasing power

What does Benham define as the demand for anything at a given price?

The amount of it which will be bought per unit of time at that price Signup and view all the answers

What does demand in economics deal with?

Consumption, production, exchange, and distribution Signup and view all the answers

Explain the meaning of demand in economics and what is necessary for demand to be effective according to Stonier and Hague?

Demand in economics means the desire backed by the willingness to buy a commodity and the purchasing power to pay. According to Stonier and Hague, demand becomes effective only if it is backed by the purchasing power in addition to the willingness to buy a commodity. Signup and view all the answers

What are the four aspects that demand in economics deals with?

The four aspects that demand in economics deals with are consumption, production, exchange, and distribution. Signup and view all the answers

What are the three essentials of demand in economics and why are they significant?

The three essentials of demand in economics are price, quantity demanded, and time. They are significant because demand is always at a price for a definite quantity at a specified time, and without these, demand has no significance in economics. Signup and view all the answers

Explain Benham's definition of demand for anything at a given price.

According to Benham, the demand for anything at a given price is the amount of it which will be bought per unit of time at that price. Signup and view all the answers