Economics Demand Quiz

What does the concept of demand in economics refer to?

• The financial ability to purchase a good

• The supply of a good in the market

• The quantity of a good consumers are willing and able to purchase at various prices

• The desire to purchase a good

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

• Direct relationship

• Proportional relationship

• No relationship

• Inverse relationship

What happens to the demand for a good if the price of its complement increases?

• Demand for the good becomes unpredictable

• Demand for the good remains unchanged

• Demand for the good decreases

• Demand for the good increases

What are substitutes in the context of demand?

• Goods that are always in demand

• Goods that are used together

• Goods that can be used in place of each other

• Goods that have no relation to each other

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

• Demand becomes unpredictable

• Demand increases

• Demand remains unchanged

• Demand decreases

What are inferior goods?

• Goods for which demand increases as income rises

• Goods that are never in demand

• Goods for which demand decreases as income rises

• Goods that are always in demand

How can changes in consumer preferences affect demand?

• They have no effect on demand

• They always increase demand

• They always decrease demand

• They can lead to shifts in demand

What role does the size and composition of the population play in demand?

• It can influence demand

• It has no effect on demand

• It always decreases demand

• It always increases demand

What is the consumer demand curve?

• A curve that shows the relationship between supply and demand

• A curve that shows the relationship between substitutes and complements

• A curve that shows the relationship between price and quantity demanded

• A curve that shows the relationship between income and demand