2 Factors Affecting Demand Quiz

What does a change in quantity demanded represent in economics?

• A shift of the demand curve due to consumer preferences

• Movement along the demand curve showing a different quantity purchased in response to a change in price

• A change in the number of consumers in the market

• The total amount of goods available in the market

What is the income effect?

• The impact of a person's income on the overall economy

• The change in demand when a consumer's income increases or decreases

• A change in purchasing power caused by a change in price

• The redistribution of income among different economic classes

What causes only the quantity demanded to change?

• Changes in consumer preferences

• Changes in the number of consumers

• Only a change in price

• Changes in the income of consumers

According to the income effect, what happens when there is a fall in price and the consumer's budget remains constant?

• Consumers will buy fewer goods

• Consumers will save more money

• Consumers will buy more goods

• There will be no change in consumer behavior

What is the substitution effect in the context of a change in quantity demanded?

• The change in quantity demanded due to a change in consumers' income

• The change in quantity demanded due to a change in the relative price of the good

• The change in quantity demanded due to a change in the number of consumers

• The change in quantity demanded due to a change in the weather

According to the example provided, how much did the consumption of burritos increase when the price dropped from $5 to $3?

• From 20 to 40

• From 24 to 44

• From 24 to 40

• From 20 to 44

What happens to the demand curve when different amounts of a product are demanded at every price?

• The demand curve remains unchanged

• The demand curve shifts to the left or the right

• The demand curve becomes vertical

• The demand curve becomes horizontal

How does an increase in consumer income generally affect their willingness to buy products?

• People are less willing to buy any products

• People are willing to buy the same amount at all possible prices

• People are willing to buy different amounts at all possible prices

• People's willingness to buy products is not affected by their income

What happens to the demand for a product when it is successfully advertised and its popularity increases?

• Demand decreases

• Demand remains the same

• Demand increases

• The price of the product decreases

What are substitutes in the context of consumer products?

• Products that are unrelated but sold together

• Products that cannot be used in place of one another

• Products that are used together for a single purpose

• Competing products that can be used in place of one another