H1 Tutorial

What goods are jointly used together to satisfy some wants?

• Substitutes

• Normal

• Complementary

• Inferior

When the price of good A falls, people start to drink less good B. In this case, what is good B considered?

• luxury good

• complementary good

• substitute good

• normal good

What is the definition of demand?

• The quantity of a good or service that producers are willing and able to purchase, at a particular price and at a particular time.
• The quantity of a good or service that consumers are willing and able to purchase, at a particular price and at a particular time.
• The quantity of a good or service that producers are willing and able to purchase, at a sell price and at a particular time.
• The quantity of a good or service that consumers are willing and able to sell, at a particular price and at a particular time.

Which of the following is NOT a non-price factor that affect demand?

• Income
• Substitute Goods
• Complimentary Products
• Cost of Production

What is the law of demand?

• As the price of a good rises, demand expands.  The law of demand describes a negative relationship between price and quantity demanded.
• As the price of a good rises, demand contracts.  The law of demand describes a positive relationship between price and quantity demanded.
• As the price of a good rises, demand contracts.  The law of demand describes a negative relationship between price and quantity demanded.
• As the price of a good rises, supply contracts.  The law of demand describes a positive relationship

Which of the following can also be used to describe the relationship between price and quantity demanded?

• Direct relationship
• Inverse relationship

Which of the following is a non-price factor affecting demand?

• Change in consumer attitudes/preference
• Production cost
• Price
• Competition

The diagram represents a

• increase in demand
• decrease in demand

A decrease in the average incomes of consumers will result in which of the following?

• A decrease in the demand for goods and services

• An increase in the demand for goods and services

• A decrease in the supply of goods and services

• An increase in the supply of goods and services

Explain the concept of consumer expectations and its impact on demand.

• Consumer expectations are only based on past experiences

• Consumer expectations have no impact on purchasing decisions

• Consumer expectations are irrelevant to demand

• Consumer expectations refer to the beliefs and predictions consumers have about future prices, product availability, and their own financial situation. These expectations can influence their purchasing decisions and affect the overall demand for goods and services.