Theory of Demand Quiz (Part 2) Formative Assessment

What are the factors affecting the demand for a good?

• Shape of the Product

• Price of the Product

• Color of the Product

• Size of the Product

How are price changes illustrated on a demand curve?

• Rightward shift of the curve

• Leftward shift of the curve

• Movement along the curve

• Downward shift along the curve

How is an increase in demand illustrated diagrammatically according to non-price changes?

• Leftward shift in the Demand Curve

• Upward movement along the curve

• Rightward shift in the Demand Curve

• Downward movement along the curve

How is a decrease in price illustrated on a demand curve?

• Rightward shift of the curve

• Downward movement along the curve

• Leftward shift of the curve

• Upward movement along the curve

Which factor does not affect the demand for a good?

• Income of consumers

• Prices of substitutes and complements

• Color of the Product

• Tastes/preferences of consumers

The price of a product rises. What will happen to the demand for its complement?

• It will contract.

• It will extend.

• It will decrease.

• It will increase.

Which of the following factors is not a cause of change in demand? Changes in

• the size of the population

• price of the commodity

•  income distribution

• taste and fashion.

What determines a consumer’s demand for a product based on the diagram?

• A

• B

• C

• D

Public transport and cars are substitute goods. The price of public transport rises. What will happen to the demand for cars?

• It will contract.

• It will extend.

• It will decrease.

• It will increase.

The diagram shows a demand curve.What does the movement from X to Y show?

• A decrease in quantity demanded due to an increase in price.

• A decrease in quantity demanded due to changes in the conditions of demand.

• An increase in quantity demanded due to changes in the conditions of demand.

• An increase in quantity demanded due to an increase in price