Unit 1 Chapter 7 Demand

What is the meaning of 'demand' in economics?

• The quantity of goods or services that will be bought at any given price over a period of time

• The quantity of goods or services that sellers are willing to supply at any given price over a period of time

• The quantity of goods or services that buyers are willing to supply at any given price over a period of time

• The quantity of goods or services that will be sold at any given price over a period of time

What is the relationship between price and quantity demanded?

• Direct relationship

• Inverse relationship

• No relationship

• Fluctuating relationship

What does a downward sloping demand curve indicate?

• As price falls, quantity demanded falls

• As price falls, quantity demanded rises

• As price rises, quantity demanded falls

• As price rises, quantity demanded rises

What causes a movement along the demand curve?

• Changes in demographics

• Changes in income

• Changes in price

• Changes in tastes and fashion

The movement from A to B where quantity demanded falls is called...

• Extension of Demand

• Contraction of Demand

What factors can affect the demand for a good apart from price and income?

• Changes in demographics

• Changes in tastes and fashion

• Changes in legislation (laws)

• All of the above

What happens to the demand for a normal good when income rises?

• It increases

• It decreases

• It remains constant

• It fluctuates randomly

Utility is the

• benefit or satisfaction that a person gets from the consumption of a good or service
• measure of how useful a resource is in the production process
• measure of productivity associated with a good or service
• economic term for production possibility frontier

The goal of a consumer is to

• acquire the largest possible quantity of goods
• acquire the largest possible variety of goods
• maximize utility
• save money

What is the law of diminishing marginal utility?

• The value or utility attached to consuming the last product bought increases as more units are consumed

• The value or utility attached to consuming the last product bought remains constant as more units are consumed

• The value or utility attached to consuming the last product bought decreases as more units are consumed

• The value or utility attached to consuming the last product bought fluctuates randomly as more units are consumed