Demand Analysis helps to understand the factors affecting the demand for a product or service in a market. Companies use this information to formulate strategies on pricing, marketing communications, sales forecasting, etc. Below is a list of multiple-choice questions and answers on Demand Analysis to help students understand the topic better. Answer: d
Answer: a
Answer: a
Answer: a
Answer: a
Answer: a
Answer: c
Answer: b
Answer: c
Answer: b
Answer: a
Answer: a
Answer: c
Answer: a
Answer: a Also See:
What happens when supply increases and price decreases?An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase.
What happens if two goods are complements?When two goods are complements, they experience joint demand - the demand of one good is linked to the demand for another good. Therefore, if a higher quantity is demanded of one good, a higher quantity will also be demanded of the other, and vice versa.
What happens to price and quantity when price for substitute increases?The substitute goods in economics are those categories of goods that can be used in place of each other. Thus, as the price of a substitute good rises then it causes the demand for the original good to rise wherein both the equilibrium price and quantity will rise.
How do you know if two goods are substitutes or complements?We determine whether goods are complements or substitutes based on cross price elasticity - if the cross price elasticity is positive the goods are substitutes, and if the cross price elasticity are negative the goods are complements.
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