helps allocate scarce resources

The market demand curve shows

Quantity goods that consumers would like to purchase at different prices

What is effective demand?

When consumers are willing and able to purchase

What are inferior goods?

Good for which the demand falls when income rises

What is notional demand?

Where buyers may want to buy but not backed up by the ability to pay

Why would a supermarket offer inferior goods and normal goods ?

to cope with changes in customer income

What is the definition of supply?

Quantity of product that producers are able and willing to sell

Identify the substitute goods

Dairy Milk Chocolate & Galaxy Chocolate

Quantity of product that consumers are willing and able to buy

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CIE Economics - Unit 2 - Demand

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Questions 17

Answers

1
If incomes rise then demand for normal goods
stays the same
rises
reduces
falls
2
Supply chain a sequence of processes that moves a product/service from production point to the point of availability to.
The Consumer
The Business
The Seller
The Investor
3
Which of the following shifts demand?
number of buyers
income
all of the above
tastes and preferences
4
The price mechanism
limits how much people can buy
helps allocate scarce resources
is used by government to balance demand and supply
helps ensure firms make profits
5
The market demand curve shows
Effect on market supply of a change in the demand for a good or service
Quantity goods that consumers would like to purchase at different prices
Cost of producing and selling different quantities of a good.
Quantity of goods willing to be supplied
6
What is effective demand?
When consumers are willing and able to purchase
When consumers make clear their intentions
When consumers are willing but not able to purchase
When consumers purchase the good/service
7
What are inferior goods?
Goods for which demand rises when income rises
goods that no one wants to buy
goods that lack quality
Good for which the demand falls when income rises
8
Identify the complement goods
Vegemite & Marmite
Coca-cola & Pepsi
Fiat & Ford Cars
Bread & Butter
9
Which one of the following is an example of joint demand?
Bacon and Eggs
Milk - cheese & butter
Roller skates - Skateboards
Fountain pen - Cartridge
10
What is notional demand?
Demand that is supported by the ability to pay
Not speculative and backed up by the willingness to pay
Demand that involves a desire to buy certain goods and services
Where buyers may want to buy but not backed up by the ability to pay
11
Why would a supermarket offer inferior goods and normal goods ?
to compete against luxury providers
to help when in Economic Growth (Boom)
to cope with changes in customer income
to fill up the shelves
12
The lower the price...
The lower the demand
The higher the supply
The higher the demand
The lower the supply
13
The slope of the demand curve is...
Upward to the right
Downward to the right
Upward to the left
Downward to the left
14
What is the definition of supply?
Quantity of product that producers are able and willing to sell
Items that the business sell to other businesses
Level of interest customers have in buying a product
Where there is balance between supply and demand
15
Identify the substitute goods
Bread & Butter
Milk & Cereal
Whiteboards & Whiteboard Pens
Dairy Milk Chocolate & Galaxy Chocolate
16
What two forces drive the price mechanism?
Demand and supply
Taxes and subsidies
Price and quantity
Needs and wants
17
What is demand
Quantity of product that consumers are willing and able to buy
How much is able to be supplied
How much people want
Amount of product which suppliers will offer to the market at a given price

CIE Economics - Unit 2 - Demand Flashcards | StudBud