The Law of Demand

The Law of Demand

Diving into

Consumer Decision-Making

Multiple Choice

The Law of Demand reflects decisions made by...

• Consumers

• Producers

• The Government

• The Trojans

Multiple Choice

According to the Law of Demand, an increase in the price of spoons will lead to...

• a decrease in the demand for sporks

• a decrease in the quantity of spoons demanded

• an increase in the quantity of spoons demanded

Multiple Choice

If Matilda has $1,000 to spend on carrots this month, and carrots cost $5 apiece, then how many carrots can Matilda buy?

• 1,000 Carrots

• 200 Carrots

• 100 Carrots

• 50 Carrots

Multiple Choice

If Matilda has $1,000 to spend on carrots this month, and carrots cost $20 apiece, then how many carrots can Matilda buy?

• 1,000 Carrots

• 200 Carrots

• 100 Carrots

• 50 Carrots

Multiple Choice

True or False: According to the Law of Diminishing Marginal Utility, the satisfaction consumers get from consuming a good/service decreases as they consume more of the the good/service.

• True

• False

Multiple Choice

The Demand curve generally slopes ________, indicating that consumers by a larger quantity of goods as price drop.

• Upward

• Downward

• Sideward

• Upthordish

Multiple Choice

True or False: When the Price of a good/service decreases, Demand for this good/service increases.

• True, people want to buy more things!

• False, the QUANTITY DEMANDED will increase, but the "Demand" (the value people place on the product) will stay the same.