Factors Affecting Demand Quiz

What is the relationship between the price of a product and the quantity demanded?

• No relationship

• Exponential relationship

• Direct relationship

• Inverse relationship

How does an increase in consumer income affect the demand for normal goods?

• Demand becomes unpredictable

• Demand decreases

• Demand remains the same

• Demand increases

What happens to the demand for a good if the price of its substitute rises?

• Demand decreases

• Demand becomes elastic

• Demand increases

• Demand remains unchanged

Which factor causes a movement along the demand curve?

• Change in consumer tastes

• Change in consumer income

• Change in the number of consumers

• Change in the price of the product

What effect does a larger population have on total demand?

• Total demand decreases

• Total demand remains the same

• Total demand becomes volatile

• Total demand increases

How do consumer expectations of future price increases affect current demand?

• Current demand decreases

• Current demand remains unchanged

• Current demand increases

• Current demand becomes unstable