Practice Demand Curve And The Law Of Demand (2.4.1) - Theory of Consumer Behaviour

Practice: Demand Curve and the Law of Demand

Lesson 2.4.1Theory of Consumer Behaviour

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8 questions

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6 sample questions

Question 1.
What happens to the quantity demanded when the price of a good decreases?
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Think about how consumers behave when prices fall.
Question 2.
Define the Law of Demand.
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Remember the inverse relationship between price and demand.
3Question 3.
What does a downward-sloping demand curve indicate?
- Price increases, quantity demanded increases
- Price decreases, quantity demanded decreases
- Price decreases, quantity demanded increases
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Think about how consumers react to price changes.
4Question 4.
True or False: A normal good's demand increases when consumer income rises.
- True
- False
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Recall the definitions of normal and inferior goods.
Question 5.
Suppose the price of a luxury good drops significantly. How would this impact the demand for both the good and its substitutes?
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Consider the effects of price on consumer choices.
Question 6.
Illustrate a scenario where the demand curve for a good shifts left. What factors may have contributed to this shift?
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Think about economic changes like recessions.

4 more questions in this section. Enroll free to practise them all.