Demand 1

Demand

​D. Bennett

​Pizza Time!

​HOW MUCH ARE YOU WILLING AND ABLE TO PAY FOR A SLICE OF PIZZA?

​Write the HIGHEST and LOWEST price that you are willing and able to pay for a slice of pizza.

Do not discuss or show anyone your answer.

​Let's put your answers on a graph!

What is Demand?

In economics, demand refers to the willingness and ability of a consumer to buy goods and services at a specific price. Economists use the term demand to indicate that consumers need particular goods or services and are willing to buy them at the price they are at the time of demand.

​Demand Curve

​A change in price causes a movement along the demand curve.

Multiple Choice

The downward slope of a demand curve

• represents the law of demand

• shows that as the price of a good rises, consumers increase the quantity they demand

• indicates how the quantity demanded changes when incomes rise and the good is a normal good

• indicates how demand changes when incomes rise and the good is a normal good

Multiple Choice

Consider the market for cellular phones. Which of the following shifts the demand curve leftward? 

• studies showing using cellular phones can cause brain cancer

• a decrease in the price of cellular phones

• a decrease in the quantity demanded of cellular phones

• an increase in the services provided by cellular phones, such as text messaging

Multiple Choice

If Mary used to buy 10 units at $4 each and now buys 15 units when the price is $4, her

• quantity demanded has increased

• quantity demanded has decreased 

• demand has increased

• demand has decreased

Multiple Choice

The phrase "a change in demand" most directly implies a 

• movement along the curve

• movement along the price curve

• change in quantity demanded of a good

• shift in the demand curve

Multiple Choice

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in

• market size

• price of a substitute good

• price of a complementary good

• tastes and preferences (popularity)  

Multiple Choice

An decrease in demand for iPhones in Hong Kong could be caused by a(n)

• increase in price for Samsung Galaxy

• increase in population in HK

• the price for iPhones is expected to increase next week

• the price of iPhone apps increased

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 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

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

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

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

A change in the demand for apples could result from any of the following except

• a change in the number of buyers

• increased preferences for fresh fruit consumption for health reasons

• a change in the price of an apple

• a change in the price of a banana

Multiple Choice

To access Internet services, consumers must use a computer. If computer prices fall, what is the effect on the demand for Internet services

• the demand for Internet services increases

• the demand for Internet services decreases

• The demand for Internet services remains unchanged

• The demand for Internet services could increase, decrease, or stay the same depending on other factors