Concept of Demand and Elasticity Quiz

What does the concept of demand refer to?

• The consumer's desire to have a commodity and the willingness and ability to pay for it

• The consumer's need for a commodity regardless of the ability to pay for it

• The quantity of a good that is supplied by producers at various prices

• The government's control over the pricing of a commodity

Which of the following is NOT a factor affecting individual demand for a commodity?

• Price of the commodity

• Consumer's income

• Price of related goods

• Government regulations

What does the law of demand state?

• As the price of a commodity falls, the quantity demanded will decrease

• As the price of a commodity rises, the quantity demanded will increase

• As the price of a commodity rises, the quantity demanded will decrease

• The quantity demanded is unaffected by the price of the commodity

What is derived demand?

What does a rightward shift in the demand curve indicate?

• An increase in demand due to an increase in price

• An increase in demand due to factors other than price

• A decrease in demand due to a decrease in price

• A decrease in demand due to factors other than price

What is price elasticity of demand?

Which of the following describes the bandwagon effect?

What is an example of a snob effect?

What happens when the demand is elastic?

According to the document, what causes a downward-sloping demand curve?

• Law of diminishing marginal utility

• Government intervention

• Increase in production costs

• Technological advancements