Factors Affecting Demand

What is the law of demand?

As the price of a good increases, the quantity demanded decreases.

As the price of a good increases, the quantity demanded increases.

As the price of a good decreases, the quantity demanded decreases.

If the price of smartphones decreases, what will happen to the demand for smartphone cases?

Increase

Decrease

Remain unchanged

Which of the following is an example of a substitute good?

Coffee and milk

Coffee and sugar

Coffee and tea

Coffee and juice

What happens to the demand for luxury goods during an economic recession (downturn)

Remain unchanged

Decrease

Increase

Which of the following factors can cause a shift in the demand curve (Choose All that Apply)?

Changes in income

Changes in taste and preferences

Changes in population

Changes in price

If the price of a complement good increases, what will happen to the demand for the main good?

Decrease

Increase

Remain unchanged

What is the difference between a change in quantity demanded and a change in demand?

A change in quantity demanded is caused by a change in price, while a change in demand is caused by factors other than price.

Demand changes with price, while quantity demanded changes with other factors.

Which of the following is an example of a non-price determinant of demand?

Price of the good

Availability of substitutes

Consumer expectations

Income

What is the relationship between price and quantity demanded on a demand curve?

Direct

Inverse

Unrelated

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