Question Details

Identify the reasons why the quantity demanded of a product increases 



1.	Demand is given by QD = 620   10•P and supply is given by QS = 100 + 3•P.  What is the price and quantity when the market is in equilibrium?
	a. 	The price will be $30 and the quantity will be 132 units.
	b.  	The price will be $11 and the quantity will be 122 units.
	c.  	The price will be $40 and the quantity will be 220 units.
	d.	The price will be $35 and the quantity will be 137 units
	e.	The price will be $10 and the quantity will be 420 units.
		

2.	Which of the following would tend to make demand INELASTIC?
a.	the amount of time analyzed is quite long
b.	there are lots of substitutes available
c.	the product is highly durable
d.	the proportion of the budget spent on the item is very small
e.	no one really wants the product at all
	

3.		Which of the following best represents management's objective(s) in utilizing demand analysis?
a.	it provides insights necessary for the effective manipulation of demand
b.	it helps to measure the efficiency of the use of company resources
c.	it aids in the forecasting of sales and revenues
d.	a and b
e.	a and c


	

	4.	Identify the reasons why the quantity demanded of a product increases as the price of that product decreases.
a.	as the price declines, the real income of the consumer increases
b.	as the price of product A declines, it makes it more attractive than product B
c.	as the price declines, the consumer will always demand more on each successive price reduction
d.	a and b
e.	a and c


	

	5.	An increase in the quantity demanded could be caused by:
a.	an increase in the price of substitute goods
b.	a decrease in the price of complementary goods
c.	an increase in consumer income levels
d.	all of the above
e.	none of the above



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