iGCSE Economics Quiz on Demand

What is the definition of demand?

• The total amount of goods available in the market

• The quantity that purchasers are willing and able to buy at a given price

• The price at which goods are sold

• The quantity that purchasers are willing to sell

What makes demand effective?

• A high price for the product

• A decrease in quantity demanded

• A willingness to buy only

• A willingness and ability to pay the market price

According to the basic law of demand, what happens when prices decrease?

• Demand decreases

• Demand remains constant

• Demand increases

• Demand becomes ineffective

What does a higher price lead to in terms of quantity demanded?

• An expansion of quantity demanded

• A contraction of quantity demanded

• No change in quantity demanded

• An increase in effective demand

Which of the following can cause a shift in the demand curve?

• Changes in the price of the product itself

• Changes in the real income of consumers

• Changes in the market supply

• Changes in the quantity demanded

What happens to demand when real income increases?

• Demand becomes ineffective

• Demand remains unchanged

• Demand decreases

• Demand increases

What is an example of seasonal demand?

• Demand for winter clothing in summer

• Demand for summer clothing in winter

• Demand for Christmas trees before Christmas

• Demand for cold drinks in summer

Which factor does NOT shift demand?

• Interest rates

• Advertising and marketing

• The size of the population

• The price of the product itself

What is potential (latent) demand?

• Demand that is equal to supply

• Demand that is ineffective

• Demand that is not yet expressed in the market

• Demand that is currently expressed in the market

What is the effect of a more equal distribution of income on total demand?

• It makes demand ineffective

• It can increase total demand

• It has no effect on total demand

• It decreases total demand