Demand

The law of demand is

• As the price increases the quantity demanded increases

• As the price increases demand decreases

• As the price increases the quantity demanded decreases

• As the price decreases the quantity demanded decreases

Goods that replace each other are called

• Supplements

• Substitutes

• Complements

• None of the above

Examples of substitutes could be

• Tea and coffee

• Tea and milk

• Bread and butter

• Fish and cabbage

Which of the following could be complements

• Iphone and Android phone

• Football and rugby ball

• Big Mac and KFC

• I phone and headphones

Producer Revenue (consumer spending) =

• The amount sold

• Profit of the business

• Price times quantity demanded

• None of the above

Which of the following would increase the demand for Marmite?

• Price of vegemite increases

• Price of vegemite decreases

• Increase in income tax

• Price of bread increases

Which if the following would increase the demand for movie tickets?

• Price of online movies increases

• The Government increases the minimum wage

• Effective advertising of movies

• All of the above

Market demand is obtained by

• Calculating the average demand for all of the consumers

• Calculating total sales in the market

• Adding the quantity demanded for each consumer at each price

• None of the above

Which of the following would reduce the quantity demanded for milk

• Bad publicity about fat content in milk

• increase in the price of the milk

• reduction in price of other drinks

• all of the above

Producers should choose the price which

• Maximises the quantity sold

• Maximises consumer satisfaction

• Maximises revenue

• Maximises the quantity demanded