Law of Demand

Law of Demand

by Kendrick Broadus

Draw

Draw a graph that shows an increase in the demand curve

Open Ended

What are 2 reasons for a decrease in demand

Lets Practice

Some text here about the topic of discussion

Multiple Choice

Which of the following will cause an increase in demand for snowboards?

• More costly production methods 
• A decrease in the price of lift tickets at resorts in Colorado 
• A decrease in consumer income   
• A decrease in the population 

Multiple Choice

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

• Demand for gasoline will decrease

• Demand for gasoline will increase

• Demand for gasoline will stay the same

• Demand for insurance agents will decrease

Multiple Choice

Due to a disappointing economy, Americans are cutting back on the family vacation road trips. What happens to the market for gasoline?

• Demand for gasoline will decrease

• Demand for gasoline will increase

• Demand for gasoline will stay the same

• The demand for airline tickets will increase

Multiple Choice

What does this downward sloping curve represent?

• supply

• equilibrium

• demand

• surplus

Multiple Choice

When there is an INCREASE in Demand, the demand curve shifts?

• left

• it does not move

• Northwest

• right

Multiple Choice

When there is a DECREASE in Demand, the demand curve shifts?

• left

• right

• no where

• around the graph

Multiple Choice

Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will

• increase

• decrease

• not be affected

Multiple Choice

The law of demand states that as the price increases then 

• quantity demanded increases

• quantity demanded decreases

• demand increases

• demand decreases

Multiple Choice

What factor could have caused the demand to decrease?

• incomes increased

• expectation that prices will increase 

• a decrease in the price of a substitute 

• increase in market size

Multiple Choice

Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this change?

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in the weather or season

• Population (Change in the number of buyers)

Multiple Choice

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

Multiple Choice

Chevy is offering trucks at lower prices, people are buying more trucks because of

• change in demand to expectations

• change in demand due to complements.

• change in demand due to income

• change in quantity demanded due to a change in price.

Multiple Choice

Consider the market for cars in Hong Kong. If the price of gasoline increases then the Demand for cars will

• increase

• decrease

Multiple Choice

A change in demand is shown

• along the demand curve

• with a new demand curve above or below the original demand curve

• without a demand graph

• with a totally vertical line

Multiple Choice

Which of the following best describes the Law of Demand?

• 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.

Multiple Choice

What is the only factor that does not shift or change demand or supply, it only causes movement along a stable demand or supply curve?

• population

• income

• price

• tastes and preferences

Multiple Choice

The price of movie tickets in a town has risen from $7 to $9. What is the most likely effect of the change in price?

• The demand curve for movie tickets will move right.

• The quantity demanded for movie tickets will increase.

• The demand curve for movie tickets will move left

• The quantity demand for movie tickets will decrease

Multiple Choice

The amount of a good or service that consumers are willing and able to buy at a SPECIFIC PRICE

• Demand

• Quantity Demanded

• Supply

• Quantity Supplied

Multiple Choice

Consumers are willing to buy more at lower prices than higher prices

• law of demand

• law of supply 

• law of inverse

• scarcity 

Multiple Choice

Which of these best describes the law of demand?

• if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up

• if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down

• there is no law of demand, each situation is unique and demand and prices cannot be predicted

• prices will go up for certain goods when quantity demanded goes up and vice versa

Poll

I know______ about the Law of Demand

• A ton. I'm an expert

• Some

• A little

• What even is "demand"

Multiple Choice

The government is giving every individual 18 and above an extra $1,000.00 this year. What determinant of demand does this likely fall under?

• Change in Consumer Tastes

• Change in Consumer Price Expectations

• Change in Number of Consumers in the Market

• Change in Consumer Income

Events That Increase Demand

A) Consumers enter the market

B) Consumers have more money

C) Consumers expect good things to happen in the future

D) Product is a fad (popular)

E) Price of a substitute good increases

F) Price of a complementary good decreases

Events That Decrease Demand G) Consumers leave the market H) Consumers have less money I) Consumers expect bad things to happen in the future J) Product goes out of style K) Price of a substitute good decreases L) Price of a complementary good increases

​Determinants of Demand

​Events That Decrease Demand

​G) Consumers leave the market

H) Consumers have less money

I) Consumers expect bad things to happen in the future

J) Product goes out of style

K) Price of a substitute good decreases

L) Price of a complementary good increases

Multiple Choice

College Students Arrive for Fall Semester Today Increase! 

• Increase

• Decrease

• No Change

Multiple Choice

Determinant of demand

Events That Increase Demand

A) Consumers enter the market B) Consumers have more money C) Consumers expect good things to happen in the future D) Product is a fad (popular) E) Price of a substitute good increases F) Price of a complementary good decreases

Events That Decrease Demand

G) Consumers leave the market H) Consumers have less money I) Consumers expect bad things to happen in the future J) Product goes out of style K) Price of a substitute good decreases L) Price of a complementary good increases

• Consumers enter the market

• Price of substitute good increases

• Consumers leave the Market

• Price of complementary goods increase

Multiple Choice

College Students Expect Tuition to Be Higher for Spring Semester

• Increase 

• Decrease

• No Change

Multiple Choice

Pizzas are half price on Tuesdays

• Increase

• Decrease

• No Change

Multiple Select

College Students Expect Tuition to Be Higher for Spring Semester

Events That Increase Demand

A) Consumers enter the market B) Consumers have more money C) Consumers expect good things to happen in the future D) Product is a fad (popular) E) Price of a substitute good increases F) Price of a complementary good decreases

Events That Decrease Demand

G) Consumers leave the market H) Consumers have less money I) Consumers expect bad things to happen in the future J) Product goes out of style K) Price of a substitute good decreases L) Price of a complementary good increases

• Consumers have less money

• Consumers enter the market

• Consumers leave the market

• Price of complementary good increases