2.1 Econ Demand

Open Ended

What relationship is the graph showing?

What information is missing or assumed?

What can you infer or what is an implication of this graph?

Multiple Choice

What is the definition of demand in economics?

• The amount of goods available for sale

• The different quantities of goods that consumers are willing and able to buy at different prices

• The price at which goods are sold

• The supply of goods in the market

Multiple Choice

What is the Law of Demand?

• There is a direct relationship between price and quantity demanded

• There is an inverse relationship between price and quantity demanded

• There is no relationship between price and quantity demanded

• Price and quantity demanded both increase together

Open Ended

Explain how a change in price affects the quantity demanded, using the demand curve as a reference.

Multiple Choice

Which of the following is NOT one of the three behavior patterns that explain the Law of Demand?

• The Substitution Effect

• The Income Effect

• The Law of Diminishing Marginal Utility

• The Law of Increasing Returns

Fill in the Blanks

If the price of a product increases, consumers will buy less of that product and more of a

product.

Multiple Choice

Which of the following best describes the income effect as explained in the Law of Demand?

• When the price of a product goes down, purchasing power increases, allowing you to buy more.

• When the price of a product goes up, purchasing power increases, allowing you to buy more.

• When the price of a product goes down, purchasing power decreases, leading you to buy less.

• When the price of a product goes up, purchasing power stays the same.

Multiple Choice

Which of the following statements correctly distinguishes between a change in quantity demanded and a change in demand as shown in the graphs?

• A change in quantity demanded is a movement along the demand curve, while a change in demand is a shift of the demand curve.

• A change in quantity demanded is a shift of the demand curve, while a change in demand is a movement along the demand curve.

• Both changes refer to movements along the demand curve.

• Both changes refer to shifts of the demand curve.

Multiple Choice

Which of the following pairs are considered complementary goods?

• Pepsi and Coca-Cola

• Gasoline and cars

• Coffee and tea

• Burger King and McDonald's

Fill in the Blanks

Fill in the blank: When the price of a complementary good goes up, the demand for the related good usually

.

Multiple Choice

What happens to demand in a market when incomes rise?

• Demand usually rises because people can buy more.

• Demand usually falls because people save more.

• Demand stays the same regardless of income changes.

• Demand becomes unpredictable.

Fill in the Blanks

When income increases, the demand for

goods decreases.

Multiple Select

Which of the following statements about normal and inferior goods are correct?

• When income increases, demand for normal goods increases.

• When income decreases, demand for inferior goods increases.

• When income increases, demand for inferior goods increases.

• When income decreases, demand for normal goods increases.

Multiple Choice

How do anticipated price changes affect demand according to the image?

• They lead to immediate changes in demand.

• They have no effect on demand.

• They only affect supply, not demand.

• They cause demand to decrease slowly.

Open Ended

Reflecting on today's lesson about supply and demand, what is one question you still have or one aspect you would like to explore further?

Open Ended

What does it mean if the Demand Curve is vertical? Horizontal? (Think about what happens to Qd when P changes)