Demand and Law of Demand Quiz

What are the factors that affect demand?

• The factors that affect demand include the phase of the moon, the number of employees, and the CEO's favorite color

• The factors that affect demand include price, consumer income, consumer preferences, price of related goods, and consumer expectations.

• The factors that affect demand include weather, government regulations, and advertising

• The factors that affect demand include the color of the product, the size of the company, and the location of the store

Explain the concept of consumer expectations and its impact on demand.

• Consumer expectations are only based on past experiences

• Consumer expectations have no impact on purchasing decisions

• Consumer expectations are irrelevant to demand

• Consumer expectations refer to the beliefs and predictions consumers have about future prices, product availability, and their own financial situation. These expectations can influence their purchasing decisions and affect the overall demand for goods and services.

Discuss the relationship between demand and supply.

• As the price of a good decreases, the quantity supplied increases

• Demand and supply have no relationship

• The relationship between demand and supply is that they are inversely related - as the price of a good increases, the quantity demanded decreases, and as the price of a good decreases, the quantity demanded increases. On the other hand, as the price of a good increases, the quantity supplied increases, and as the price of a good decreases, the quantity supplied decreases.

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

How does advertising and marketing influence demand?

• Demand is solely determined by product quality and price

• Consumers are not influenced by advertising and marketing

• Advertising and marketing can influence demand by creating awareness, generating interest, and persuading consumers to purchase the product or service.

• Advertising and marketing has no impact on demand

What role does consumer taste and preferences play in determining demand?

• Consumer taste and preferences play a significant role in determining demand as they drive the choices and decisions of consumers.

• Consumer taste and preferences are only important for luxury goods, not everyday items

• Consumer taste and preferences only impact supply, not demand

• Consumer taste and preferences have no impact on demand

How does the law of diminishing marginal utility relate to the law of demand?

• The law of diminishing marginal utility has no relation to the law of demand

• The law of diminishing marginal utility relates to the law of demand by explaining how the quantity demanded decreases as the price of a product increases due to the decreasing satisfaction from consuming additional units.

• The law of diminishing marginal utility causes the quantity demanded to increase as the price of a product increases

• The law of diminishing marginal utility only applies to luxury goods and not to the law of demand

Demand is the desire to have some good or service and the _____ to pay for it.

_____ is one of the major factors that influence demand.

An increase in the price of a good or service will lead to an increase in quantity demanded.

• True

• False

What two factors are necessary for demand?

• a. desire for a good or service and its availability in the market

• b. desire for a good or service and the ability to pay for it

• c. the availability of a good or service and the ability to pay for it

• d. familiarity with a good or service and the desire to pay for it