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Shifting Demand quiz

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  • What does the ceteris paribus assumption mean in the context of demand curves?
    Ceteris paribus means 'all else equal,' so only the price changes while all other factors remain constant.
  • What happens to the demand curve when only the price of a product changes?
    A change in price causes movement along the demand curve, not a shift of the curve itself.
  • What is a 'change in quantity demanded'?
    It refers to movement along the demand curve due to a change in the product's price.
  • What causes the demand curve to shift rather than move along it?
    A change in any determinant of demand other than price, such as preferences or income, shifts the demand curve.
  • How is a decrease in demand shown on a demand curve graph?
    A decrease in demand is shown by shifting the demand curve to the left.
  • What does a rightward shift of the demand curve indicate?
    A rightward shift indicates an increase in demand at every price level.
  • List the five main determinants of demand discussed in the lesson.
    The five determinants are consumer preferences, number of consumers, consumer expectations, consumer income, and the price of related goods.
  • How do changes in consumer preferences affect demand?
    If consumers prefer a good more, demand increases; if they prefer it less, demand decreases.
  • What effect does an increase in the number of consumers have on demand?
    An increase in the number of consumers raises demand, shifting the curve to the right.
  • How do consumer expectations about future prices affect current demand?
    If consumers expect prices to rise, current demand increases; if they expect prices to fall, current demand decreases.
  • How does an increase in consumer income affect demand for normal goods?
    An increase in income raises demand for normal goods, shifting the demand curve to the right.
  • What happens to demand for inferior goods when consumer income rises?
    Demand for inferior goods decreases when consumer income rises.
  • How does the price of a substitute good affect demand for a product?
    If the price of a substitute rises, demand for the product increases.
  • What is the effect on demand for a good if the price of its complement increases?
    If the price of a complement increases, demand for the good decreases.
  • What is the difference between a change in demand and a change in quantity demanded?
    A change in demand shifts the entire curve due to non-price factors, while a change in quantity demanded is movement along the curve due to a price change.