Factors Affecting Demand Quiz

What is the income effect ?

• that part of a change in quantity demanded due to a change in the buyer’s real income when a price changes

• that part of a change in price demanded due to a change in the buyer’s real income when a price changes

• Consumers can feel "sadder"

• Consumers can feel "happier"

What is the substitution effect in the context of change in quantity demanded?

• that part of a change in quantity demanded due to a price change that makes other products more or less costly

• Makes other products more affordable

• that part of a change in quantity demanded due to a price change that makes other products better quality

• Makes other products more costly

What is the term for competing products that can be used in the place of one another?

• Complements

• Substitutes

• Alternatives

• Supplements

Which factor can affect demand based on how it affects consumers’ willingness to buy?

• Expectations

• Consumer tastes

• The number of consumers

• Consumer income

What type of goods are bought in smaller quantities or not at all if income rises and better goods can be afforded?

• Essential goods

• Luxury goods

• Inferior goods

• Normal goods

What can affect consumer tastes?

• Advertising

• Trends

• Rumors

• All of the above

What is the term for products that increase the use of other products?

• Substitutes

• Supplements

• Complements

• Alternatives

What can cause a shift in demand based on news of upcoming events, price changes, or products?

• Consumer income

• Consumer tastes

• Expectations

• The number of consumers

What type of change shows the amount someone is willing to purchase changes when the price changes?

• Change in Quantity Demanded

• Change in Demand

• Change in Quantity Supplied

• Change in Supply

Which strategy would be recommended to increase the demand for pizza?

• Increase the price of a complementary good

• Increase the price of large pizzas

• Reduce the price of a complementary good

• Reduce the price of large pizzas