2 Factors Affecting Demand Lesson

Multiple Choice

What does a change in quantity demanded represent in economics?

• A shift of the demand curve due to consumer preferences

• Movement along the demand curve showing a different quantity purchased in response to a change in price

• A change in the number of consumers in the market

• The total amount of goods available in the market

Multiple Choice

What is the income effect?

• The impact of a person's income on the overall economy

• The change in demand when a consumer's income increases or decreases

• A change in purchasing power caused by a change in price

• The redistribution of income among different economic classes

Drag and Drop

What causes only the quantity demanded to change?

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Changes in consumer preferences

Changes in the number of consumers

Only a change in price

Changes in the income of consumers

Dropdown

According to the income effect, what happens when there is a fall in price and the consumer's budget remains constant?

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Multiple Choice

What is the substitution effect in the context of a change in quantity demanded?

• The change in quantity demanded due to a change in consumers' income

• The change in quantity demanded due to a change in the relative price of the good

• The change in quantity demanded due to a change in the number of consumers

• The change in quantity demanded due to a change in the weather

Multiple Choice

According to the example provided, how much did the consumption of burritos increase when the price dropped from $5 to $3?

• From 20 to 40

• From 24 to 44

• From 24 to 40

• From 20 to 44

Multiple Choice

What happens to the demand curve when different amounts of a product are demanded at every price?

• The demand curve remains unchanged

• The demand curve shifts to the left or the right

• The demand curve becomes vertical

• The demand curve becomes horizontal

Multiple Choice

How does an increase in consumer income generally affect their willingness to buy products?

• People are less willing to buy any products

• People are willing to buy the same amount at all possible prices

• People are willing to buy different amounts at all possible prices

• People's willingness to buy products is not affected by their income

Drag and Drop

What happens to the demand for a product when it is successfully advertised and its popularity increases?

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Demand decreases

Demand remains the same

Demand increases

The price of the product decreases

Multiple Choice

What are substitutes in the context of consumer products?

• Products that are unrelated but sold together

• Products that cannot be used in place of one another

• Products that are used together for a single purpose

• Competing products that can be used in place of one another

Multiple Choice

How are substitutes related in terms of price and demand?

• An increase in the price of one decreases the demand for the other

• An increase in the price of one increases the demand for the other

• A decrease in the price of one increases the demand for the other

• The price of one does not affect the demand for the other

Multiple Choice

What are complements in the context of market demand?

• Products that decrease the use of other products

• Products that increase the use of other products

• Products that are unrelated to other products

• Products that substitute for other products

Multiple Choice

How can the expectation of future events affect market demand?

• It has no effect on market demand

• It decreases market demand regardless of the nature of the expectation

• It increases market demand regardless of the nature of the expectation

• The way people think about the future can affect demand

Dropdown

What happens to market demand when more consumers enter the market?

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Drag and Drop

Can the purchase of fresh vegetables be delayed?

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No

Only during certain seasons

Not applicable

Yes

Dropdown

Are there adequate substitutes available for gasoline from Exxon?

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Drag and Drop

Does the purchase of insulin use a large portion of income?

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Yes

No

Depends on the country

Depends on the insurance coverage

Drag and Drop

What is the type of elasticity for butter?

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Elastic

Inelastic

Perfectly elastic

Unitary elastic

Dropdown

If you applied all three questions to a luxury product, what would be the elasticity of demand for that product?

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