3.3 - Factors Affecting Demand
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Practice Questions
Test your understanding with targeted questions
What happens to quantity demanded when the price of a good increases?
💡 Hint: Think of the Law of Demand relationship.
Define 'normal goods'.
💡 Hint: Remember examples of products people buy more of when they earn more.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the Law of Demand?
💡 Hint: Think about how buyers react to price changes.
True or False: An increase in consumer income will always increase the demand for inferior goods.
💡 Hint: Consider how people shift their purchases with more income.
2 more questions available
Challenge Problems
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Assume the price of electric cars decreases significantly. Analyze how demand for both electric cars and gasoline cars would change, applying the concepts of substitutes and demand shifts.
💡 Hint: Use the concept of preferences when prices shift.
Evaluate the impact of a recession on the demand for luxury and inferior goods. How do these categories react differently to changes in consumer income?
💡 Hint: Reflect on how spending habits change during financial strain.
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