Demand

What is demand?

• Demand is the quantity of a good or service that consumers are unwilling and unable to purchase

• Demand is the quantity of a bad or service that consumers are willing to purchase at any price

• Demand is the quantity of a good or service that consumers are unwilling to purchase

• Demand is the quantity of a good or service that consumers are willing and able to purchase at a given price and time.

Explain the law of demand.

• The law of demand states that as the price of a good or service increases, the quantity demanded remains constant.

• The law of demand states that as the price of a good or service increases, the quantity demanded increases.

• The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.

• The law of demand states that as the price of a good or service decreases, the quantity demanded decreases.

What are the factors affecting demand?

• Geographic location, educational level, personal beliefs

• Price, income, consumer preferences, population, advertising, price of related goods

• Technological advancements, global economy, social media influence

• Weather, time of day, political climate

What is the demand curve?

• The demand curve shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

• The demand curve only applies to luxury goods.

• The demand curve is a straight line that never changes.

• The demand curve shows the quantity of a good or service that producers are willing to supply at various prices.

Discuss the concept of elasticity of demand.

• Elasticity of demand measures the speed at which consumers purchase goods

• Elasticity of demand is a measure of how much the quantity supplied of a good changes in response to a change in price

• Elasticity of demand is only applicable to luxury goods

• The concept of elasticity of demand is a measure of how much the quantity demanded of a good changes in response to a change in price.

How does price affect demand?

• Price and demand have a direct relationship; as price increases, demand increases.

• Price and demand have an inverse relationship; as price increases, demand decreases.

• Price and demand are unrelated; they do not impact each other.

• Price has no effect on demand.

Explain the income effect on demand.

• The income effect on demand is related to changes in consumer preferences.

• The income effect on demand is only applicable to luxury goods.

• The income effect on demand is not influenced by changes in consumer income.

• The income effect on demand explains how changes in consumer income affect the quantity of goods or services consumers are willing to purchase.