Demand and Non-Price Determinants

Front

Law of Demand states...

Back

Price goes up, demand goes down, price goes down, demand goes up.

Front

The only thing that affects demand is price

Back

No

Front

Determine the non-price determinant for the following scenario: A factory closes down in a community, no Disney Land this year kiddos.

Back

income

Front

T/F Non-price determinants shift left or right at a higher or lower price

Back

False

Front

Despite poor reviews from critics, Minecraft makes 331 million worldwide on its first weekend. What direction does the demand curve shift and what is the non-price determinant?

Back

right, personal taste & preference

Front

A decrease in the price of a complement good will likely:

Back

Increase the demand for the original good.

Front

What is the effect of an increase in consumer income on the demand for an inferior good?

Back

Demand decreases

Front

What factor would cause a shift in the demand curve to the right? Options: A decrease in the price of the good, An increase in consumer income, assuming the good is a normal good, An improvement in the technology used to produce the good, A decrease in the number of suppliers

Back

An increase in consumer income, assuming the good is a normal good

Front

What is elasticity of demand?

Back

Elasticity of demand measures how drastically consumers will cut back or increase their demand for a good when prices rise or fall.

Front

T/F the demand for shoes will go down because of the slight price increase of its complement good, shoelaces. It went from 10 cents to a WHOPPING 20 cents.

Back

False