Question 1

Which of the following is not a determinant of a consumer's demand for a commodity?

Accepted Answer

Population

Answer

Income

Answer

Prices of related goods

Answer

Tastes

Question 2

The law of demand refers to the

Accepted Answer

inverse relationship between the price of a commodity and the quantity demanded of the commodity per time period.

Answer

direct relationship between the desire a consumer has for a commodity and the amount of the commodity that the consumer demands.

Answer

inverse relationship between a consumer's income and the amount of a commodity that the consumer demands.

Answer

direct relationship between population and the market demand for a commodity.

Question 3

If the price of a good increases, then

Accepted Answer

the demand for substitute goods will increase.

Answer

the demand for complementary goods will increase.

Answer

the demand for the good will increase.

Answer

the demand for the good will decrease.

Question 4

Which factor causes an increase in demand for a good or service?

Accepted Answer

An increase in consumers' disposable income

Answer

An increase in the price of substitute goods

Answer

A decrease in the price of the good itself

Answer

A decline in the quality of the good

Question 5

What happens to the equilibrium price when the demand increases?

Accepted Answer

The equilibrium price increases

Answer

The equilibrium price decreases

Answer

The equilibrium price stays the same

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