Factors Affecting Demand in Economics

RewardingLobster avatar

Start Quiz

Study Flashcards

12 Questions

What is the relationship between price and quantity demanded?

Inverse relationship

Which term represents goods that can be used in place of one another for satisfaction of a particular want?

Substitute goods

What happens to the demand for a commodity when the price of its substitute increases?

Demand increases

How does a decrease in the price of a substitute affect the demand for a given commodity?

Demand decreases

Which economic principle describes the inverse relationship between price and demand?

Law of Demand

What is the mathematical expression for demand as a function of price?

$D = f(P)$

How does an increase in the price of a complementary good affect the demand for a given commodity?

Decreases the demand for the given commodity

Which of the following is an example of complementary goods mentioned in the text?

Bread and Butter

How does a decrease in income affect the demand for an inferior good?

Increases the demand

What determines whether a good is normal or inferior for a consumer?

The consumer's income level

How do tastes and preferences of the consumer influence demand?

Directly influence demand for commodities

Which of the following examples are substitute goods according to the text?

Coke and Pepsi

Learn about the relationship between the price of a commodity and the quantity demanded, and how it affects consumer satisfaction. Explore how price changes can impact demand for a specific commodity in economics.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free

More Quizzes Like This

Mastering Price Elasticity
5 questions
Elasticity of Demand Calculation
6 questions
Price Elasticity of Demand
10 questions
Use Quizgecko on...