Demand

Which of the following are determinants of demand for a product/service?

• 1. Price of the product/service

• 1. Income of the buyer

• 1. Desire to purchase the product/service

• 1. All of the above

Two goods are ___________ when the quantity consumed of one decreases with the increase in price of the other.

• 1. Substitute

• 1. Normal

• 1. Complementary

• 1. None of the above

Normal goods have negative income effect

• true

• false

• none of the above

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs

• Buy fewer CDs

• Quantity demanded will not change

The definition of demand in an economic perspective is ________________.

• the desire to purchase goods and services at a certain price.

• the desire of all individuals in a market to purchase goods.

• the desire of an individual to obtain goods and services, supported by the ability to pay a certain price.

• he ability of an individual to spend his/her income to purchase goods and services.

This image refers to what?

• demand schedule 

• supply schedule 

• quantity demanded

• components of demand 

The law of demand states with increase in price there is

• decrease in quantity demanded

• increase in quantity demanded

• decreased demanded

• increased demanded

Demand is affected by

• price of commodity

• population

• interest and fashion

• all of the above