Demand and Supply Concepts

The video tutorial discusses non-price determinants of demand, including changes in consumer income, tastes, preferences, population size, demographics, expectations of future prices, and prices of related goods. Using M&M's as an example, the tutorial explains how demand shifts with changes in income, substitutes, and complementary goods. It also covers how future price expectations can affect current demand.

Which of the following is NOT a non-price determinant of demand?

• Changes in population size

• Changes in production technology

• Changes in tastes and preferences

• Changes in consumer incomes

How does an increase in consumer income affect the demand for a normal good?

• Demand increases

• Demand becomes unpredictable

• Demand remains unchanged

• Demand decreases

What happens to the demand for an inferior good when consumer income rises?

• Demand increases

• Demand decreases

• Demand remains unchanged

• Demand becomes unpredictable

If the price of Smarties increases, what is likely to happen to the demand for M&M's?

• Demand for M&M's decreases

• Demand for M&M's increases

• Demand for M&M's remains unchanged

• Demand for M&M's becomes unpredictable

Which of the following is an example of substitute goods?

• M&M's and bubblegum

• M&M's and DVD players

• Smarties and M&M's

• DVDs and DVD players

What effect does a decrease in the price of DVDs have on the demand for DVD players?

• Demand for DVD players increases

• Demand for DVD players becomes unpredictable

• Demand for DVD players decreases

• Demand for DVD players remains unchanged

Which of the following pairs are complementary goods?

• Smarties and DVDs

• M&M's and bubblegum

• DVDs and DVD players

• M&M's and Smarties

How do future price expectations affect current demand?

• They decrease current demand

• They make current demand unpredictable

• They increase current demand

• They have no effect

If consumers expect the price of M&M's to rise in the future, what is likely to happen to current demand?

• Current demand becomes unpredictable

• Current demand remains unchanged

• Current demand decreases

• Current demand increases

Which factor is NOT considered when analyzing future price expectations?

• Current demand trends

• Current consumer income

• Current supply levels

• Expected future prices