Demand Curve Dynamics and Influences

The video explores non-price determinants of demand, explaining how factors like income, tastes, preferences, prices of related goods, demographic, and seasonal changes affect demand. It distinguishes between movements along the demand curve due to price changes and shifts in the demand curve caused by changes in non-price determinants.

What happens to the demand curve when a non-price determinant changes?

• It shifts either left or right.

• It moves up or down.

• It remains unchanged.

• It disappears.

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

• Demand increases.

• Demand remains the same.

• Demand decreases.

• Demand becomes unpredictable.

What is the impact of a decrease in income on the demand for inferior goods?

• Demand decreases.

• Demand increases.

• Demand remains unchanged.

• Demand becomes erratic.

What is the effect of a successful advertising campaign on demand?

• It makes demand fluctuate.

• It decreases demand.

• It increases demand.

• It has no effect on demand.

How do changes in fashion trends affect demand?

• They make demand unpredictable.

• They can increase demand.

• They have no effect on demand.

• They decrease demand.

If the price of Pepsi increases, what is likely to happen to the demand for Coca-Cola?

• Demand for Coca-Cola becomes unstable.

• Demand for Coca-Cola remains the same.

• Demand for Coca-Cola increases.

• Demand for Coca-Cola decreases.

What happens to the demand for petrol if the price of cars increases?

• Demand for petrol remains the same.

• Demand for petrol decreases.

• Demand for petrol increases.

• Demand for petrol becomes volatile.

How do demographic changes affect demand?

• They can increase or decrease demand.

• They only affect luxury goods.

• They only affect inferior goods.

• They have no effect on demand.

How do seasonal changes affect demand for certain products?

• They decrease demand.

• They only affect luxury items.

• They can increase demand.

• They have no effect.

What is the difference between a movement along the demand curve and a shift of the demand curve?

• Movement is due to price changes; shift is due to non-price factors.

• Movement is due to non-price factors; shift is due to price changes.

• Both are due to price changes.

• Both are due to non-price factors.