II. 11:51 63 / 36 X Multiple choice questions 1 What is measured on the vertical axis of a demand diagram? A Cost B Price C Quantity demanded D Wants 2 What happens to people's willingness and ability to buy a product when its price falls? Willingness Ability A increases increases B increases decreases C decreases decreases D decreases increases 3 An increase in demand is represented by: A A movement down the demand curve B A movement up the demand curve C A shift to the left of the demand curve D A shift to the right of the demand curve 4 The price of a product rises. What will happen to the demand for its complement? A It will contract B It will extend C It will decrease D It will increase Four-part question a Define market demand. (2) b Explain the relationship between demand and a change in price. (4) c Analyse the effect of a rise in the price of tea on the demand for milk and the demand for coffee. (6) d Discuss whether or not the demand for bicycles will rise in the future. (8) C padlet.com EE <