Quiz on Demand Concepts

What does demand for a commodity refer to?

• The quantity available in the market

• The total quantity produced

• The quantity a consumer is willing to buy at a given price

• The quantity supplied by producers

According to the law of demand, what happens when the price of a commodity increases?

• Demand increases

• Demand decreases

• Demand remains constant

• Supply increases

What type of demand refers to the quantities purchased at different income levels?

• Joint demand

• Price demand

• Income demand

• Cross demand

What is an example of complementary goods?

• Cement and bricks

• Pen and ink

• Tea and coffee

• Bread and butter

What is derived demand?

• Demand for goods that are wanted for themselves

• Demand that arises from the demand for another good

• Demand that is influenced by consumer preferences

• Demand that is constant regardless of price

Which of the following is an example of Giffen goods?

• High-end electronics

• Potatoes during a famine

• Luxury cars

• Designer handbags

What is the relationship between price demand and price?

• Proportional relationship

• No relationship

• Inverse relationship

• Direct relationship

What are Veblen goods characterized by?

• Stable demand regardless of price

• Decreased demand as prices rise

• Demand that is inversely related to income

• Increased demand as prices rise due to status

What is the primary purpose of demand forecasting?

• To reduce customer satisfaction

• To manage inventory effectively

• To increase production costs

• To limit market research

Which of the following is NOT a type of demand mentioned?

• Cross demand

• Market demand

• Income demand

• Price demand