1 What is Demand Lesson

Open Ended

1. How can demand be expressed?

Open Ended

1. What are some examples of what we refer to as individual demand?

Open Ended

1. What are some examples of what we refer to as individual demand?

Open Ended

1. What happens when prices are low?

2. What is a high value use of oil?

3. What is a low value use of oil?

4. What does the demand curve describe?

Open Ended

1. What is disposable income?

2. What happens if disposable income rises faster than prices?

Multiple Choice

Which of the following are the two variables of demand mentioned in the text?

• The quality of a product and the quantity available.

• The price of a product and the quantity demanded.

• The price of a product and the quantity available at a given point in time.

• The marketing strategy and the economic conditions.

Multiple Choice

According to the Law of Demand, what happens when the price of a product goes up?

• The quantity demanded goes up.

• The quantity demanded stays the same.

• The quantity demanded goes down.

• The price of the product goes down.

Multiple Choice

What is the relationship between price and quantity demanded as noted in the Law of Demand?

• Direct and proportional.

• Inverse and unrelated.

• Direct and unrelated.

• Inverse and proportional.

Multiple Choice

What does demand involve according to the introduction?

• A single quantity that someone is willing to buy at a high price.

• A combination of quantities that someone is willing to buy over a range of possible prices.

• The amount of product a company wants to sell.

• The fixed price at which a product is sold.

Multiple Choice

What is 'Quantity Demanded'?

• The total amount of goods available in the market

• The amount of a good or service that a producer is willing to supply

• The amount of a good or service that a consumer is willing to buy at a particular price at a given time

• The fluctuation in price due to market trends

Multiple Choice

What are the two conditions that determine an individual's demand schedule?

• They must be willing and able to buy for a specific time period

• They must have a coupon and a membership card

• They must be influenced by advertising and marketing

• They must be able to buy only during sales

Multiple Choice

What is a demand schedule?

• A list of products available in the market

• A timetable for when a store is open

• Combination of quantities that someone would be willing and able to buy over a range of possible prices at a given moment

• A schedule of when new products will be released

Multiple Choice

As the price of a small soda increases from $0.50 to $2.75, what happens to the number demanded per day according to the Market Demand Schedule?

• It increases

• It remains constant

• It decreases

• It fluctuates unpredictably

Multiple Choice

What is likely to happen if the price of an item goes down, according to the information provided?

• A) Consumers will buy less

• B) Consumers will buy more

• C) The quality of the item will increase

• D) The item will no longer be available for purchase

Multiple Choice

What does a demand curve show?

• The quantity supplied at each price

• The quantity demanded at each and every possible price

• The relationship between supply and demand

• The price of a product over time

Multiple Choice

Which is the main variable that affects demand?

• Quality of the product

• Price of the product

• Marketing of the product

• Availability of substitutes

Multiple Choice

What term is used to describe the amount people have to spend?

• Financial capacity

• Purchasing power

• Economic influence

• Spending limit

Multiple Choice

What does the Market Demand Curve represent?

• The maximum price a consumer is willing to pay for a product

• The demand curve that shows the quantities demanded by everyone who is willing and able to purchase a product at all possible prices at one moment in time

• The total revenue a company makes from selling a product

• The relationship between the supply of a product and its price

Multiple Choice

What is marginal utility?

• The total satisfaction obtained from consuming a product

• The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product

• The satisfaction obtained from the first unit of a product

• The decrease in satisfaction as more units of a product are consumed

Multiple Choice

What does diminishing marginal utility refer to?

• Increase in satisfaction as more units of a product are acquired

• Constant satisfaction from each additional unit of a product

• Decrease in additional satisfaction or usefulness as additional units of a product are acquired

• The initial satisfaction obtained from the first unit of a product

Multiple Choice

What does 'Diminishing marginal utility' explain about consumer behavior?

• The more you use a product, the more satisfied you become.

• The usefulness of a product increases with its price.

• The more you use a product, the less satisfied you become.

• Demand for a product is limitless regardless of consumption.