Demand Curve Concepts and Applications

The video tutorial explains the concept of demand curves, including their types, characteristics, and the law of demand. It covers individual and market demand curves, the factors that cause shifts in demand curves, and exceptions like Giffin goods. The tutorial also highlights the determinants of demand and how changes in these factors can shift the demand curve.

What does a demand curve visually represent?

• The relationship between income and demand

• The relationship between price and quantity demanded

• The relationship between supply and demand

• The relationship between cost and profit

Which axis is typically used to plot the price in a demand curve?

• None of the above

• Diagonal

• Vertical (y-axis)

• Horizontal (x-axis)

What is an individual demand curve?

• A curve showing the supply of a single product

• A curve showing the demand of a single consumer

• A curve showing the total market demand

• A curve showing the average demand of all consumers

How is a market demand curve derived?

• By multiplying individual demand curves

• By horizontally summing individual demand curves

• By vertically summing individual demand curves

• By averaging individual demand curves

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

• Quantity supplied decreases

• Quantity demanded remains the same

• Quantity demanded increases

• Quantity demanded decreases

Which of the following is NOT a determinant of demand?

• Price of related goods

• Tastes or preferences of the buyer

• Cost of production

• Income of the buyer

What effect does an increase in income have on the demand curve for normal goods?

• Shifts the demand curve inward

• Shifts the demand curve outward

• Flattens the demand curve

• No effect on the demand curve

How does a decrease in the price of complementary goods affect the demand curve?

• Shifts the demand curve inward

• Shifts the demand curve outward

• No effect on the demand curve

• Reverses the demand curve

What is a Giffin good?

• A substitute good with elastic demand

• A low-income product that defies the law of demand

• A luxury product with high demand

• A complementary good with inelastic demand

What happens to the demand for Giffin goods when their price increases?

• Demand decreases

• Demand fluctuates

• Demand increases

• Demand remains the same