Chapter 3: Cung & Cầu

Which of the following statements most accurately describes the law of demand?

• When the price of a good increases, the demand for that good decreases and vice versa.

• When the price of a good decreases, the demand for that good decreases.

• When the price of a good increases, the demand for that good decreases.

• When the price of a good increases, the demand for that good increases.

What does the demand curve show?

• The quantity demanded for a specific good at different price levels.

• The quantity demanded for a good will change when income changes.

• The specific quantity will be supplied to the market at different price levels.

• The quantity demanded for a specific good will change when the prices of related goods change.

The law of demand states that: if all other factors remain constant, then:

• There is a relationship between the quantity demanded of this good and the price of substitute goods.

• There is a direct relationship between quantity demanded and income.

• There is a direct relationship between the quantity demanded of goods and preferences.

• There is an inverse relationship between the quantity demanded of goods and their price.

The movement along the demand curve of any product A is due to:

• The price of product A changes.

• The income of consumers changes.

• Taxes change.

• The price of substitute products decreases.

The demand curve for mobile phones shifts to the right as shown in the image due to which reason?

• The production cost of mobile phones decreases.

• The income of the population increases.

• Due to investment from foreign technology companies like Apple, Samsung.

• The selling price of mobile phones decreases.

Which of the following factors does not shift the demand curve for a product?

• Consumer income.

• Consumer preferences and tastes.

• Prices of related goods.

• Prices of input materials for product production.

Who does the law of supply state:

• An increase in demand directly leads to an increase in supply.

• Producers are willing to supply less at a higher price.

• There is an inverse relationship between supply and price.

• Producers are willing to supply more at a higher price.

What does the supply curve reflect?

• The discrepancy between the quantity demanded and the quantity supplied at each price level.

• The quantity of goods that producers will sell at each price level in the market.

• The maximum quantity of goods that the industry can produce, regardless of price.

• The highest price that producers are willing to accept at each level of output.

Movement along the supply curve indicates that when the price of goods decreases, then?

• Supply decreases.

• The supply curve shifts to the right.

• Supply increases.

• The supply curve shifts to the left.

What is secondary goods?

• It is a good that, with other factors held constant, when income increases, the quantity demanded increases.

• It is a good that, with other factors held constant, when income decreases, the quantity demanded decreases.

• It is a good that, with other factors held constant, when income increases, the quantity demanded decreases.

• It is a type of good that has a high selling price.