Economics 3.2

What does "ceteris paribus" mean in economics?

• Everything changes

• Nothing is constant

• All else being equal

• Market equilibrium

When income increases and the demand for a product decreases, this product is considered:

• A normal good

• An inferior good

• A complementary good

• A substitute good

Which of the following would NOT cause a shift in the demand curve?

• Change in consumer preferences

• Change in price of the good

• Change in population

• Change in income levels

In economics, goods that are used together are called:

• Substitute goods

• Inferior goods

• Normal goods

• Complementary goods

A rightward shift of the demand curve indicates:

• A decrease in demand

• An increase in demand

• A movement along the demand curve

• No change in demand

Which demographic factor can influence market demand?

• The price of the good

• The age distribution of the population

• The location of the supply curve

• The production technology

If the price of coffee increases and people buy more tea, tea is considered:

• A complement to coffee

• An inferior good

• A substitute for coffee

• A normal good

What is a normal good?

• A good that decreases in demand when income rises

• A good that increases in demand when income rises

• A good that only wealthy people buy

• A good that has constant demand regardless of income

Which non-price determinant affects demand through changing consumer expectations?

• Future price expectations

• Current market price

• Production costs

• Supply chain efficiency

When analyzing changes in demand, which factor is held constant under ceteris paribus?

• Consumer preferences

• Price of the good

• Population size

• Income levels