Understanding Demand

Understanding Demand

Mrs. Stuart

Open Ended

Why do people purchase more when a sale takes place?

Multiple Choice

TRUE OR FALSE: The law of demand states that consumers buy less of a good when the price is low.

• True

• False

Multiple Choice

TRUE OR FALSE: The Substitution Effect states that a consumer reacts to an increase in price of a good by buying less or substituting it for a cheaper version.

• True

• False

Multiple Choice

Higher prices _______ your purchasing power.

• increase

• reduce

Multiple Choice

A ___________ schedule records the quantity demanded at various prices.

• Supply

• Demand

• Substitution

• Income