Demand Practice

What is the definition of demand in economics?

• The amount of a service provided by suppliers at each price.

• The willingness of consumers to sell a good at various prices.

• The amount of some good or service consumers are willing and able to purchase at each price.

• The fixed quantity of a good that is available in the market.

What does 'quantity demanded' mean?

• The total number of units a supplier is willing to produce at a specific price.

• The total number of units purchased at a specific price.

• The potential number of units that could be sold at a specific price.

• The number of units a consumer wishes to purchase, regardless of price.

According to the law of demand, what is the relationship between price and quantity demanded?

• A higher price leads to a higher quantity demanded.

• A lower price leads to a lower quantity demanded.

• A higher price typically leads to a lower quantity demanded.

• There is no clear relationship between price and quantity demanded.

What does the Ceteris Paribus assumption imply when there is a movement along the demand or supply curve.

• All economic factors change with the product's price.

• Only the product's price is considered, while all other relevant economic factors are held constant.

• The relationship between supply and demand is not affected by any variables.

• Multiple variables are considered simultaneously to determine the effect on supply and demand.

What does a change in quantity demanded refer to in economics?

• A shift of the demand curve due to consumer preferences

• A movement along the demand curve caused by a change in income

• A movement along the demand curve caused only by a price change

• A change in the quantity supplied due to production costs

What does a change in demand refer to in economics?

• A movement along the demand curve

• A shift in the entire demand curve

• A change in the price of the product

• A change in the quantity supplied

Which of the following factors would increase demand?

• Income drops (for a normal good)

• Price of substitute falls

• Future expectations encourage buying

• Population likely to buy drops

What happens to the demand curve when there is a taste shift to greater popularity for a product?

• It shifts left

• It remains unchanged

• It shifts right

• It becomes steeper

Which factor is likely to decrease demand for a product?

• Income rises (for a normal good)

• Price of complements falls

• Taste shift to lesser popularity

• Price of substitute rises

What is the effect on the demand curve if the price of complements falls?

• The demand curve shifts left

• The demand curve shifts right

• There is a movement along the demand curve

• The demand curve becomes flatter