Demand and Consumer Preferences

The video discusses factors affecting demand, including price, income, related goods, and preferences. Price increases lead to lower demand, while higher income can increase demand for normal goods but decrease it for inferior goods. Related goods, such as complements and substitutes, also impact demand. Preferences influenced by age, gender, and culture play a role in determining demand.

What happens to the demand for a product when its price increases?

• Demand fluctuates randomly

• Demand remains the same

• Demand decreases

• Demand increases

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

• Demand decreases

• Demand remains unchanged

• Demand increases

• Demand becomes unpredictable

What are inferior goods?

• Goods that have no substitutes

• Goods consumed less as income increases

• Goods consumed more as income increases

• Goods that are always in high demand

How does the price of fuel affect the demand for cars?

• It makes car demand unpredictable

• It decreases the demand for cars

• It has no effect on car demand

• It increases the demand for cars

What happens to the demand for a substitute good if the price of its counterpart decreases?

• Demand for the substitute increases

• Demand for the substitute decreases

• Demand for the substitute remains the same

• Demand for the substitute becomes unpredictable

If tea is cheaper than coffee, what is likely to happen to the demand for tea?

• Demand for tea will decrease

• Demand for tea will remain unchanged

• Demand for tea will become unpredictable

• Demand for tea will increase

Which of the following factors can influence consumer preferences?

• All of the above

• Price

• Income

• Age

How does culture affect demand?

• It can increase demand for certain goods

• It has no effect on demand

• Both B and C

• It can decrease demand for certain goods

Why might Muslims have zero demand for pork?

• Due to cultural preferences

• Because pork is expensive

• Because pork is not available

• Because pork is unhealthy

What is the effect of age on consumer preferences?

• Older people prefer more expensive goods

• Preferences can vary with age

• Younger people prefer more expensive goods

• Age has no effect