Quiz on Theory of Demand

What is the definition of demand?

• Willingness and ability to buy a product

• The amount of money a consumer has

• The total quantity of a product available

• The price of a product

What is market demand?

• The total demand for a product

• The demand for a single consumer

• The demand for luxury goods only

• The demand for inferior goods

What is the relationship between price and demand?

• Proportional relationship

• No relationship

• Inverse relationship

• Direct relationship

What happens to demand when the price increases?

• Demand fluctuates

• Demand decreases

• Demand increases

• Demand remains the same

What is meant by 'extension' in demand?

• A constant demand regardless of price

• A rise in quantity demanded as price falls

• A shift of the demand curve to the left

• A fall in quantity demanded as price rises

What causes a 'contraction' in demand?

• A rise in price

• A fall in price

• An increase in consumer income

• A decrease in population

What does a shift of the demand curve to the right indicate?

• Decrease in demand

• Increase in demand

• Decrease in price

• No change in demand

Which of the following is a cause of change in demand?

• Changes in consumer income

• Changes in production costs

• Changes in technology

• Changes in government regulations

What are complementary goods?

• Goods that are luxury items

• Goods used together

• Goods used instead of each other

• Goods that are always in demand

What is an example of a substitute good?

• Ice cream and cake

• Milo and Bournvita

• Bread and Butter

• Tea and coffee