Lesson 1.2.1

1.2.1 Factors that change demand Quiz: Pearson Edexcel Business, Unit 1

20 questions

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Lesson 1.2.1, Factors that change demand: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.

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The 20 questions

  1. Which factor shifts the demand curve for a normal good to the right?

    • Lower substitute price
    • Higher product price
    • Lower consumer income
    • Higher consumer income
  2. Which pair of goods are substitutes for each other?

    • Butter and margarine
    • Printers and ink
    • Tea and milk
    • Shoes and socks
  3. How does a fall in the price of a complementary good affect demand?

    • Demand stays constant
    • Demand falls
    • Demand increases
    • Supply increases
  4. Which factor causes predictable demand changes at specific times of year?

    • Demographics
    • Seasonality
    • Indirect taxation
    • External shocks
  5. What type of factor is an unexpected pandemic affecting business demand?

    • Economic growth
    • Demographic shift
    • Seasonal change
    • External shock
  6. What happens to demand for an inferior good when incomes rise?

    • Demand stays unchanged
    • Supply falls
    • Demand rises
    • Demand falls
  7. Which factor involves changes in population characteristics like age?

    • Branding
    • Seasonality
    • External shocks
    • Demographics
  8. Consumer income rises by 10% and demand for a good rises by 15%. What is the income elasticity of demand?

    • 150
    • 0.15
    • 0.67
    • 1.5
  9. What relationship exists between goods with a positive cross elasticity of demand?

    • Inferior goods
    • Complements
    • Normal goods
    • Substitutes
  10. How does an increase in product popularity shift the demand curve?

    • Downwards along curve
    • Upwards along curve
    • To the left
    • To the right
  11. What happens to the demand curve for Good A when a complement's price rises?

    • Shifts right
    • Remains unchanged
    • Moves along curve
    • Shifts left
  12. Which curve is directly shifted by a government subsidy to producers?

    • Marginal utility curve
    • Indifference curve
    • Demand curve
    • Supply curve
  13. How does an ageing population affect demand for mobility scooters?

    • Supply decreases
    • Demand stays constant
    • Demand increases
    • Demand decreases
  14. Which factor will shift the demand curve for umbrellas to the right?

    • Cheaper umbrella fabric
    • Higher manufacturing taxes
    • Forecast heavy rain
    • Production subsidies
  15. How should a business manage operational resources for highly seasonal products?

    • Maintain constant stock
    • Plan around peaks
    • Reduce selling prices
    • Stop all advertising
  16. A product has a YED of +2.4 and consumer incomes rise by 5%. What is the predicted change in demand?

    • A rise of 12%
    • A rise of 2.4%
    • A fall of 12%
    • A rise of 0.48%
  17. Why is forecasting demand for fashion products particularly difficult?

    • High government taxes
    • Fixed production costs
    • Stable demographics
    • Fast-changing tastes
  18. Goods X and Y are complementary goods. What happens to demand for X when the price of Y rises?

    • It rises
    • It stays unchanged
    • It becomes elastic
    • It falls
  19. Which factor causes an external shock to permanently alter consumer demand?

    • Seasonal weather changes
    • Short-term shortages
    • Temporary price cuts
    • Changed consumer habits
  20. Income rises by 10% and demand rises by 10%. What type of good is this?

    • Inferior good
    • Complementary good
    • Normal good
    • Substitute good

All Pearson Edexcel Business quizzes