Practice Market Demand (2.5) - Theory of Consumer Behaviour

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9 questions

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6 questions · about 4 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is market demand?
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Think about the word 'market' and 'demand' together.
Question 2.
How do we derive market demand from individual demands?
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What does 'horizontal summation' refer to?
3Question 3.
What does 'market demand' refer to?
- Demand from one consumer
- Total demand from all consumers
- Demand at one price only
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Think more broadly than just one person’s needs.
4Question 4.
True or False: A rise in income will decrease demand for normal goods.
- True
- False
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Consider what happens to everyday items when people have more money.
Question 5.
If the price of a good increases significantly and it's a substitute for another, predict how market demand will shift. Provide examples to support your answer.
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Think about products that people commonly alternate.
Question 6.
Analyze how seasonal trends can affect market demand for specific goods. Provide a detailed explanation.
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Consider holidays or changes in weather conditions.

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