Quiz 4 What is ‘demand’ in Economics? The free market. The willingness and ability to buy goods and services. Consumption of goods. Production of goods and services. A normal good’s price and quantity demanded are inversely related. True False Quantity supplied is not usually affected by the price. True False What is a demand curve? A graphical representation of a good or service’s price and the respective quantities supplied. A curve showing marginal costs A graphical representation of a good or service’s price and the respective quantities demanded. A curve showing gross profit From the following, tick the determinants of demand. Income Substitutes Quality of the products Price Taste & Fashion Season. An outward or a right shift in demand curve represents an increase in demand. True False What happens to the Demand Curve when income of the customers goes up? Nothing happens to the demand curve, but quantity demanded increases. Demand Curve shifts to its left. Demand Curve shifts to its right. Nothing happens to the demand curve, but quantity demanded increases. What happens to the Demand Curve of a particular product when a new scientific finding tells that its consumption has health risks? Demand Curve shifts to its left. Demand Curve shifts to its right. Demand Curve becomes steeper. Nothing happens to the demand curve, just the quantity demanded decreases. What is market equilibrium? It is the point at which demand and supply equals each other. The point at which supply equals the price. The point which maximizes the profit of suppliers. The point at which people can save more money. The demand of a product increases if a substitute’s price increases. True False Loading … Question 1 of 10