Determinant of Demand

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

A decrease in the average incomes of consumers will result in which of the following?

• A decrease in the demand for goods and services

• An increase in the demand for goods and services

• A decrease in the supply of goods and services

• An increase in the supply of goods and services

Which factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2016 Passat.

• income

• population

• consumer tastes & advertising

• prices of related goods

Which of the following is a determinant of demand?

• Price of the good

• Consumer income

• Technology

• Government policy

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

• It decreases

• It increases

• It remains unchanged

• It fluctuates

How does a change in consumer preferences affect demand?

• It shifts the demand curve

• It moves along the demand curve

• It does not affect demand

• It changes the supply curve

Which of the following is NOT a determinant of demand?

• Consumer tastes

• Number of buyers

• Production cost

• Expectations of future prices

If the price of a substitute good rises, what happens to the demand for the original good?

• It decreases

• It increases

• It remains the same

• It becomes elastic

What effect does an increase in population have on the demand for goods?

• Decreases demand

• Increases demand

• No effect

• Makes demand elastic

Which factor is likely to cause a decrease in demand for a product?

• Increase in consumer income

• Decrease in consumer income

• Increase in population

• Decrease in the price of a substitute