Demand pt 2

Demand pt 2

Some practice and some review

BUT FIRST....

yep, you guessed it...a little review of Pt 1...only 7 questions

Multiple Choice

What is required for demand?

• cash and desire

• willing and able

• consumers and producers

Multiple Choice

The Law of Demand says there's a Direct relationship between price and quantity demanded.

• True

• False

Multiple Choice

If you eat the same thing for lunch every day, you'll probably get sick of it.

• Substitution Effect

• Income Effect

• Law of Diminishing Marginal Utility

Multiple Choice

Which is NOT one of the 5 shifters of Demand?

• tastes & preferences

• number of consumers

• income

• curves

Multiple Choice

Coke and Pepsi

• substitutes

• complements

Multiple Choice

bread and peanut butter

• substitutes

• complements

Multiple Choice

It is correct to say that the demand curve moves up and down.

• True

• False

Multiple Choice

If you make more money you will buy more of these

• normal goods

• inferior goods

Multiple Choice

If you make less money you will buy more of these

• normal goods

• inferior goods

Multiple Choice

Would SPAM be a normal or an inferior good?

• normal good

• inferior good

Multiple Choice

Would generic or store brand cereal be a normal or an inferior good?

• normal good

• inferior good

Multiple Choice

Would a yacht be a normal or an inferior good?

• normal good

• inferior good

Multiple Choice

Would ramen noodles be a normal or an inferior good?

• normal good

• inferior good

You'll need some paper (seriously) and something to write with

Don't worry, you won't have to write very much.

Multiple Choice

Identify the SHIFTER for hamburgers (a normal good) if there is a population boom.

• tastes & preferences

• number of consumers

• price of related goods (complements of substitutes)

• income

• future expectations

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if there is a population boom?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Identify the SHIFTER for hamburgers (a normal good) if incomes fall due to a recession.

• tastes & preferences

• number of consumers

• price of related goods (complements of substitutes)

• income

• future expectations

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if incomes fall due to a recession?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Identify the SHIFTER for hamburgers (a normal good) if the price of tacos, a substitute, decreases.

• tastes & preferences

• number of consumers

• price of related goods (complements of substitutes)

• income

• future expectations

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if the price of tacos, a substitute, decreases?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Identify the SHIFTER for hamburgers (a normal good) if there is a new health craze that encourages people NOT to eat ground beef.

• tastes & preferences

• number of consumers

• price of related goods (complements of substitutes)

• income

• future expectations

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if there is a new health craze that encourages people NOT to eat ground beef?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Identify the SHIFTER for hamburgers (a normal good) if hamburger restaurants announce that they will significantly increase prices NEXT month.

• tastes & preferences

• number of consumers

• price of related goods (complements of substitutes)

• income

• future expectations

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if hamburger restaurants announce that they will significantly increase prices NEXT month?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if the price of hamburgers increases to $5?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Identify the SHIFTER for hamburgers (a normal good) if the price of fries, a complement, increases.

• tastes & preferences

• number of consumers

• price of related goods (complements of substitutes)

• income

• future expectations

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if the price of fries, a complement, increases?

• right (increase)

• left (decrease)

• curve wouldn't move

Multiple Choice

Which way would the curve move for hamburgers (a normal good) if restaurants lowered their prices to $0.50?

• right (increase)

• left (decrease)

• curve wouldn't move