Y10 Economics - C7 Demand

What does demand refer to?

• The cost of production

• The total sales of a product

• The quantity of goods available

• The willingness and ability to pay for a product

What is the law of demand?

• Demand is always constant

• An inverse relationship between price and quantity demanded

• There is no relationship between price and demand

• Higher prices lead to higher demand

What happens to demand when the price of a good falls?

• Demand increases

• Demand remains the same

• Demand becomes unpredictable

• Demand decreases

What is meant by 'real income'?

• Total income of a company

• Income adjusted for inflation

• Income from investments

• Income before taxes

Which of the following is an example of substitutes?

• Tennis balls and tennis racquets

• Tea and coffee

• Coca-Cola and Pepsi

• Both B and C

What does 'contraction in demand' refer to?

• A stable demand

• A shift in the demand curve

• A decrease in quantity demanded due to price hike

• An increase in quantity demanded

What is a determinant of demand?

• All of the above

• Consumer preferences

• Advertising

• Government regulations

What does a downward sloping demand curve indicate?

• No relationship between price and quantity demanded

• Demand is perfectly elastic

• Inverse relationship between price and quantity demanded

• Direct relationship between price and quantity demanded

What causes a movement along the demand curve?

• Changes in consumer income

• Changes in the price of goods

• Changes in advertising strategies

• Changes in government policies

What is market demand?

• The demand for essential goods only

• The demand for luxury goods only

• The total demand from all consumers for a product

• The demand of a single consumer