Demand Curve Review

Front

If Population increases then the demand of a given product will __________

Back

Increase

Answer explanation

As the population increases, more people require products, leading to a higher demand. Therefore, the correct answer is that the demand of a given product will increase.

Front

If Population decreases then the demand of a given product will __________

Back

Decrease

Answer explanation

If the population decreases, there are fewer consumers available to purchase products, leading to a lower demand. Therefore, the correct answer is that the demand of a given product will decrease.

Front

If peoples income increase then the demand of a given product will __________

Back

Increase

Answer explanation

When people's income increases, they generally have more purchasing power, leading to a higher demand for various products. Therefore, the demand for the given product will increase.

Front

If peoples income decrease then the demand of a given product will __________

Back

Decrease

Answer explanation

If people's income decreases, they have less money to spend, leading to a decrease in demand for most products. Therefore, the correct answer is that the demand will decrease.

Front

If the price of a substitute product increases then the demand of a given product will __________

Back

Increase

Answer explanation

If the price of a substitute product increases, consumers will seek alternatives, leading to an increase in demand for the given product. Thus, the correct answer is 'Increase'.

Front

If the price of a substitute product decreases then the demand of a given product will __________

Back

Decrease

Answer explanation

If the price of a substitute product decreases, consumers will prefer the cheaper substitute over the original product, leading to a decrease in demand for the given product.

Front

If the given product becomes a popular fad then the demand of a given product will __________

Back

Increase

Answer explanation

If the product becomes a popular fad, more people will want to buy it, leading to an increase in demand. Therefore, the correct answer is 'Increase'.

Front

If the given product is no longer in fashion then the demand of a given product will __________

Back

Decrease

Answer explanation

If a product is no longer in fashion, consumer interest declines, leading to a decrease in demand. Therefore, the correct answer is 'Decrease'.

Front

If there is fear of economic recession and increased unemployment then the demand of a given product will __________

Back

Decrease

Answer explanation

If there is fear of economic recession and increased unemployment, consumers tend to spend less due to uncertainty about their financial future. This leads to a decrease in demand for products, making 'decrease' the correct choice.

Front

People's desire for a product and their ability to pay for it

Back

Demand

Answer explanation

Demand refers to people's desire for a product combined with their ability to pay for it. This concept captures both the willingness and the financial capacity to purchase, making 'Demand' the correct choice.