IGCSE Economics-REview-Demand

What is the definition of demand?

• Quantity of a product or service that consumers are willing and able to purchase at a given price and time.

• The quantity of a product or service that consumers are unwilling to purchase at a given price and time.

• The quantity of a product or service that consumers are willing and able to purchase at any price and time.

• The quantity of a product or service that consumers are willing and able to purchase at a given price and place.

According to the law of demand, as the price of a good increases, what happens to the quantity demanded?

• the quantity demanded increases

• the quantity demanded remains the same

• the quantity demanded fluctuates

• the quantity demanded decreases

What are the determinants of demand?

• Price, income, consumer preferences, population, advertising, availability of complements

• Price, income, consumer preferences, population, advertising, government regulations

• Price, income, consumer preferences, population, advertising, availability of substitutes

• Price, income, consumer preferences, population, advertising, technological advancements

If two goods are substitutes, what happens to the demand for one good if the price of the other good increases?

• The demand for one good will remain unchanged.

• The demand for one good will decrease.

• The demand for one good will fluctuate.

• The demand for one good will increase.

If two goods are complements, what happens to the demand for one good if the price of the other good decreases?

• The demand for one good will increase.

• The demand for one good will remain unchanged.

• The demand for one good will become elastic.

• The demand for one good will decrease.

How does income affect demand?

• Income affects demand only for luxury goods.

• Income has no effect on demand.

• Income affects demand negatively.

• Income affects demand positively.

What is the difference between normal goods and inferior goods?

• Normal goods are goods for which demand increases as income decreases, while inferior goods are goods for which demand decreases as income decreases.

• Normal goods are goods for which demand increases as income increases, while inferior goods are goods for which demand decreases as income increases.

• Normal goods are goods for which demand decreases as income decreases, while inferior goods are goods for which demand increases as income decreases.

• Normal goods are goods for which demand decreases as income increases, while inferior goods are goods for which demand increases as income increases.

If a person's income increases, what happens to the demand for normal goods?

• The demand for normal goods decreases.

• The demand for normal goods becomes unpredictable.

• The demand for normal goods increases.

• The demand for normal goods remains the same.

If a person's income decreases, what happens to the demand for inferior goods?

• The demand for inferior goods fluctuates.

• The demand for inferior goods increases.

• The demand for inferior goods remains the same.

• The demand for inferior goods decreases.

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• Economics

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