Questions and Answers
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?
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Which economic principle describes the inverse relationship between price and demand?
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What is the mathematical expression for demand as a function of price?
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How does an increase in the price of a complementary good affect the demand for a given commodity?
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Which of the following is an example of complementary goods mentioned in the text?
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How does a decrease in income affect the demand for an inferior good?
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What determines whether a good is normal or inferior for a consumer?
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How do tastes and preferences of the consumer influence demand?
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Which of the following examples are substitute goods according to the text?
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