A Level Business: Demand and Supply Quiz

When the price of Pepsi rises, Coca-Cola notices an increase in its sales. This is because:

• Pepsi and Coca-Cola are complementary goods

• The demand for Pepsi has become more inelastic

• Pepsi and Coca-Cola are substitutes

• Pepsi has become an inferior good

The demand for petrol falls sharply after a surge in electric car sales. This is best explained by:

• A fall in consumer income

• A change in a substitute good

• A change in a complementary good

• Seasonal factors

Luxury watch sales fall during a recession. What type of good is this?

• Inferior

• Normal

• Complementary

• Necessity

When household income rises, demand for budget supermarkets like Aldi decreases. This suggests Aldi’s goods are:

• Normal goods

• Inferior goods

• Complementary goods

• Substitutes

A sudden viral TikTok trend boosts demand for a new brand of trainers. This is an example of:

• Seasonal demand

• Change in consumer income

• Change in fashion and tastes

• Government intervention

After an intense advertising campaign, demand for Dove body wash increases. This demonstrates that:

• Advertising shifts demand to the right

• Supply has increased

• Price elasticity of supply has changed

• External shocks are influencing demand

Apple maintains strong sales even when prices rise. This is because:

• It faces many substitutes

• Consumer incomes are falling

• Advertising is ineffective

• Strong branding reduces price sensitivity

An aging population increases demand for healthcare services. This is an example of:

• A change in tastes

• A demographic change

• A technological improvement

• An indirect tax effect

After the government announces a fuel subsidy, demand for cars increases. This is due to:

• A supply shift

• An external shock increasing disposable income

• Seasonal factors

• Substitutes becoming cheaper

Demand for ice cream rises sharply in July but drops in December. This is caused by:

• Advertising

• Substitutes

• Seasonality

• Consumer incomes