Review of Demand & Circular Flow Model

Front

Which of the following best describes the Law of Demand? Options: As price goes down, demand goes down. (and vice versa)., As price goes down, demand goes up (and vice versa)., As demand goes down, supply goes up., As demand goes up, price becomes elastic.

Back

As price goes down, demand goes up (and vice versa).

Front

A table that lists the quantity of a good that a single person will buy at each price in a market.

Back

demand schedule

Front

What is not an example of a substitute? Options: Disneyland and Six Flags, Peanut butter and jelly, Hershey's and Nestle chocolate, Microsoft Word and Google Docs

Back

Peanut butter and jelly

Front

What causes the shift in demand when thousands of people leave a small town due to a factory closing down and sales at the local grocery store become slow?

Back

Change in the number of buyers

Front

According to the Law of Demand, when the price of a good is lowered, demand __________.

Back

increases

Front

The demand curve always slopes

Back

down and to the right

Front

Goods that are bought and used together are

Back

complementary goods

Front

Demand can most likely be changed by: consumer taste, productivity, the number of products, the number of competition

Back

consumer taste

Front

On a demand curve, an increase in demand causes the curve to shift

Back

shift to the right.

Front

If a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?

Back

it will go down