Year 9 Demand and Law of Demand

What is the definition of demand?

• The quantity of a good or service that producers are willing and able to purchase, at a particular price and at a particular time.
• The quantity of a good or service that consumers are willing and able to purchase, at a particular price and at a particular time.
• The quantity of a good or service that producers are willing and able to purchase, at a sell price and at a particular time.
• The quantity of a good or service that consumers are willing and able to sell, at a particular price and at a particular time.

What is the law of demand?

• As the price of a good rises, demand expands.  The law of demand describes a negative relationship between price and quantity demanded.
• As the price of a good rises, demand contracts.  The law of demand describes a positive relationship between price and quantity demanded.
• As the price of a good rises, demand contracts.  The law of demand describes a negative relationship between price and quantity demanded.
• As the price of a good rises, supply contracts.  The law of demand describes a positive relationship

Which of the following is NOT a non-price factor that affect demand?

• Income
• Substitute Goods
• Complimentary Products
• Cost of Production

^{What happens if price decreases from $5 to $4?
(click to remove this writing)}

• Demand contracts from 100 to 200
• Supply expands from 100 to 200
• Demand expands from 100 to 200
• Supply decreases from 200 to 100

What happens if price increases from $2 to $4? (click to remove this message)

• Demand will expand by 200 units
• Demand will contract by 200 units
• Supply will expand by 200 units
• No change, the price won't affect demand or su

How do we describe the relationship between price and quantity demanded?

• Positive relationship
• Negative relationship

Which of the following can also be used to describe the relationship between price and quantity demanded?

• Direct relationship
• Inverse relationship

On a demand graph, which axis is price?

• Horisontal axis
• Vertical axis

On a demand graph, which axis is quantity demanded?

• Vertical axis
• Horisontal axis

Which of the following is a non-price factor affecting demand?

• Change in consumer attitudes/preference
• Production cost
• Price
• Competition