Demand Determinants and Consumer Behavior

The video tutorial covers non-price determinants of demand, including market size, expectations, related goods, income changes, and taste and preference. It explains how these factors can shift the demand curve, unlike price changes that cause movement along the curve. A case study on Vietnam's helmet law illustrates how non-price factors can affect demand.

What does the acronym MERIT stand for in the context of non-price determinants of demand?

• Market size, Expectations, Related prices, Income, Taste

• Market size, Economy, Related prices, Income, Technology

• Market size, Expectations, Revenue, Income, Taste

• Market size, Expectations, Related prices, Investment, Taste

How does an increase in population affect the demand for food?

• It decreases the demand for food.

• It has no effect on the demand for food.

• It increases the demand for food.

• It stabilizes the demand for food.

What happens to the demand for a product if its price is expected to rise in the future?

• Demand fluctuates unpredictably.

• Demand increases as people buy more to stock up.

• Demand remains unchanged.

• Demand decreases as people wait for the price to drop.

If the price of Coke increases, what is likely to happen to the demand for Pepsi?

• Demand for Pepsi will remain the same.

• Demand for Pepsi will fluctuate.

• Demand for Pepsi will increase.

• Demand for Pepsi will decrease.

What are complementary goods?

• Goods that are used in place of each other.

• Goods that are unrelated to each other.

• Goods that are always sold together.

• Goods that are bought and consumed together.

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

• Demand for normal goods decreases.

• Demand for normal goods increases.

• Demand for normal goods fluctuates.

• Demand for normal goods remains unchanged.

Which of the following is an example of an inferior good?

• Smartphones

• Cup noodles

• Designer clothes

• Luxury cars

What is the impact of changing tastes and preferences on the demand for goods?

• It has no impact on demand.

• It can shift the demand curve.

• It only affects luxury goods.

• It stabilizes the demand curve.

What happens to the demand curve when there is a change in price?

• There is a movement along the demand curve.

• The demand curve remains unchanged.

• The demand curve shifts left or right.

• The demand curve disappears.

In the context of the video, what was the effect of the helmet law in Vietnam on demand?

• It caused the demand for helmets to fluctuate.

• It decreased the demand for helmets.

• It increased the demand for helmets.

• It had no effect on the demand for helmets.