Demand

What does a correct representation of a demand curve look like? What are its parts?

• A downward sloping line with price on the vertical axis and quantity on the horizontal axis.
• A zigzag line showing fluctuating demand at different price levels.
• A horizontal line indicating constant demand regardless of price changes.
• An upward sloping line with quantity on the vertical axis and price on the horizontal axis.

What is the best representation of a market demand curve?

• An upward-sloping line on a graph showing price versus quantity supplied. The total quantity supplied at a given price.

• A horizontal line indicating a fixed price regardless of quantity demanded. The average price of goods in the market.

• A vertical line representing quantity demanded at a single price point. Sum of all individual supply curves.

• A downward-sloping line on a graph showing price versus quantity demanded. Sum of all individual demand curves.

When a demand for a necessity is involved it is typically?

• elastic
• perfectly elastic
• unitary elastic
• inelastic

What is the most common factor to influence the demand for a luxury item?

• Consumer income
• Advertising strategies
• Seasonal trends
• Brand popularity

What creates a change in the quantity demanded?

• A change in the quality of the product.
• An increase in the number of suppliers.
• A change in consumer preferences.
• A change in the price of the good or service.

On a demand curve, what does a shift to the left indicate?

• A decrease in demand.
• An increase in demand.
• A shift in consumer preferences.
• A decrease in supply.

If the cross-price elasticity of two goods is positive, the goods are:

• inferior goods
• independent goods
• complements
• substitutes

What is an example of something that has an inelastic demand?

• Designer clothing
• Fast food items
• Luxury cars
• Essential medications

What is not a determinant of demand?

• Price
• Consumer income
• Taste preferences
• Technology

If a percentage increase in price leads to a percentage decrease in quantity demanded, the demand is?

• elastic
• unitary elastic
• perfectly inelastic
• inelastic