#1
Which of the following is a determinant of demand?
Price of the product
ExplanationPrice of the product affects demand.
#2
Which factor does not directly affect the demand for a product?
Production costs
ExplanationProduction costs do not directly impact demand.
#3
Which of the following is not a determinant of demand?
Income of the producer
ExplanationProducer's income does not impact demand.
#4
What is the Law of Demand?
As the price of a good increases, the quantity demanded decreases.
ExplanationInverse relationship between price and quantity demanded.
#5
Which of the following is not a shift factor of the demand curve?
Changes in price of the good
ExplanationPrice changes do not shift the demand curve.
#6
If the price of smartphones decreases, what happens to the demand for smartphone cases, assuming all other factors remain constant?
Demand for smartphone cases increases
ExplanationLower smartphone prices boost smartphone case demand.
#7
What effect does an increase in consumer income have on the demand for normal goods?
Increases the demand
ExplanationHigher income raises demand for normal goods.
#8
What effect does a decrease in the price of gasoline have on the demand for SUVs, assuming all other factors remain constant?
Increases the demand for SUVs
ExplanationLower gasoline prices boost SUV demand.
#9
Which of the following factors is likely to increase the demand for organic produce?
A rise in consumer awareness about the benefits of organic food
ExplanationIncreased awareness boosts organic produce demand.
#10
Which of the following is an example of a substitute good?
Beef and chicken
ExplanationBeef and chicken are substitutes.
#11
Which of the following is an example of a complementary good?
Peanut butter and jelly
ExplanationPeanut butter and jelly are complementary.
#12
What happens to the demand for luxury goods during an economic recession?
Decreases
ExplanationDemand for luxury goods falls during a recession.
#13
If a product has few or no substitutes, what effect does this have on its demand elasticity?
Inelastic demand
ExplanationFew substitutes result in inelastic demand.
#14
Which factor is not considered when determining the cross-price elasticity of demand?
Income of consumers
ExplanationConsumer income is not a factor in cross-price elasticity.
#15
What happens to the demand for a product if its price decreases and consumers expect the price to decrease further in the future?
Remains unchanged
ExplanationExpectation of future decrease keeps demand stable.