Consumer Demand and Market Influences

The video explores various factors affecting demand beyond price, such as related goods, income, tastes, expectations, and population. It explains how substitutes and complements influence demand, the impact of income changes on normal and inferior goods, and how tastes and trends can affect purchasing decisions. The video also discusses the role of consumer expectations and population changes in demand, concluding with an explanation of demand curve movements and shifts.

What is the primary focus of non-price determinants of demand?

• Factors that affect government policies

• Factors that affect demand other than price

• Factors that affect supply

• Factors that affect production costs

What happens to the demand for coffee if the price of tea decreases?

• Demand for coffee becomes unpredictable

• Demand for coffee decreases

• Demand for coffee remains unchanged

• Demand for coffee increases

How does an increase in income generally affect the demand for normal goods?

• Demand increases

• Demand becomes volatile

• Demand remains constant

• Demand decreases

Which of the following is an example of an inferior good?

• Organic food

• Bus rides

• Luxury cars

• Designer clothes

How can social customs influence consumer demand?

• By reducing the need for goods

• By increasing the supply of goods

• By encouraging spending beyond means

• By stabilizing market prices

What might consumers do if they expect future prices to fall?

• Increase their current demand

• Postpone their purchases

• Buy more luxury goods

• Ignore price changes

How does an increase in population affect market demand?

• It decreases market demand

• It has no effect on market demand

• It makes market demand unpredictable

• It increases market demand

What is the result of a shift in the demand curve?

• A change in quantity supplied

• A change in government policy

• A change in price

• A change in demand due to non-price factors

What is the difference between movement along the demand curve and a shift in the demand curve?

• Movement is due to price changes; shift is due to non-price factors

• Both are due to price changes

• Both are due to non-price factors

• Movement is due to non-price factors; shift is due to price changes

Which factor is NOT a non-price determinant of demand?

• Production technology

• Consumer expectations

• Price of related goods

• Consumer income