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

Practice - Demand Curve and the Law of Demand

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Learning

Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What happens to the quantity demanded when the price of a good decreases?

💡 Hint: Think about how consumers behave when prices fall.

Question 2 Easy

Define the Law of Demand.

💡 Hint: Remember the inverse relationship between price and demand.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does a downward-sloping demand curve indicate?

Price increases
quantity demanded increases
Price decreases
quantity demanded decreases
Price decreases
quantity demanded increases

💡 Hint: Think about how consumers react to price changes.

Question 2

True or False: A normal good's demand increases when consumer income rises.

True
False

💡 Hint: Recall the definitions of normal and inferior goods.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Suppose the price of a luxury good drops significantly. How would this impact the demand for both the good and its substitutes?

💡 Hint: Consider the effects of price on consumer choices.

Challenge 2 Hard

Illustrate a scenario where the demand curve for a good shifts left. What factors may have contributed to this shift?

💡 Hint: Think about economic changes like recessions.

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Reference links

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