Factors Affecting Demand

The video explores various factors affecting consumer demand, including prices, tastes, complements, substitutes, income, expectations, and population. It explains how each factor influences the quantity of goods consumers are willing to buy. The video concludes with a summary and a teaser for the next topic: the demand curve.

What happens to the demand for apples when their price decreases from $2 to $1?

• Demand increases

• Demand remains the same

• Demand decreases

• Demand fluctuates

How do advertisements affect consumer demand for a product?

• They decrease demand

• They have no effect

• They increase demand

• They make demand unpredictable

What is the relationship between the price of bread and the demand for jam?

• No relationship

• Inverse relationship

• Direct relationship

• Unpredictable relationship

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

• Demand for Coke becomes unpredictable

• Demand for Coke remains the same

• Demand for Coke decreases

• Demand for Coke increases

What are normal goods?

• Goods that are always in demand

• Goods that decrease in demand as income increases

• Goods that increase in demand as income increases

• Goods that are unaffected by income changes

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

• Demand increases

• Demand becomes unpredictable

• Demand decreases

• Demand remains the same

How do expectations of future price increases affect current demand?

• Current demand becomes unpredictable

• Current demand decreases

• Current demand increases

• Current demand remains the same

What is the effect of population growth on the demand for housing?

• Demand becomes unpredictable

• Demand increases

• Demand remains the same

• Demand decreases

Which of the following is NOT a factor affecting demand?

• Population size

• Government regulations

• Consumer preferences

• Price of the good

What is the next topic after understanding the factors affecting demand?

• Market equilibrium

• Demand curve

• Price elasticity

• Supply curve