Demand Curve Influences and Effects

The video tutorial explains the factors that can shift the demand curve, including changes in tastes and preferences, the number of buyers, income levels, and the prices of related goods. It uses examples like computers and Cabbage Patch Kids to illustrate how these factors influence consumer behavior and market dynamics. The tutorial also discusses the concepts of normal and inferior goods, as well as substitutes and complements, to provide a comprehensive understanding of demand shifts.

What happens to the demand curve when there is an increase in demand?

• It shifts to the left.

• It shifts to the right.

• It becomes vertical.

• It remains unchanged.

How do changes in tastes and preferences affect the demand curve?

• They make the demand curve steeper.

• They have no effect on the demand curve.

• They cause the demand curve to shift right.

• They cause the demand curve to shift left.

What is the effect of an increase in the number of buyers on the demand curve?

• The demand curve shifts to the left.

• The demand curve becomes flatter.

• The demand curve becomes steeper.

• The demand curve shifts to the right.

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

• Demand becomes unpredictable.

• Demand increases.

• Demand remains the same.

• Demand decreases.

What happens to the demand for inferior goods when income decreases?

• Demand decreases.

• Demand remains the same.

• Demand becomes unpredictable.

• Demand increases.

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

• Demand remains the same.

• Demand increases.

• Demand becomes unpredictable.

• Demand decreases.

How does the price of a substitute good affect the demand for a product?

• It causes the demand to decrease.

• It causes the demand to increase.

• It has no effect on demand.

• It makes the demand curve steeper.

What is the relationship between complements and demand?

• If the price of a complement decreases, demand remains the same.

• If the price of a complement increases, demand decreases.

• If the price of a complement decreases, demand decreases.

• If the price of a complement increases, demand increases.

How do buyer expectations about future prices affect current demand?

• Expectations of higher future prices increase current demand.

• Expectations of lower future prices increase current demand.

• Expectations of higher future prices decrease current demand.

• Expectations have no effect on current demand.

What is the effect of a price increase in a related good on the demand for a product?

• It causes the demand to decrease.

• It causes the demand to increase.

• It has no effect on demand.

• It makes the demand curve steeper.