Laws of Demand

There are 5 posters around the room:
1. Clothes
2. A Car
3. Vacation
4. A House
5. Groceries

​Directions:
- On your desk you have sticky notes.
- Label them from 1 to 5
- Then, walk around the room to put a 1 on the poster that is MOST important to you
- Your sticky with a 5 on it should be the LEAST important to you

Multiple Choice

Which of the following is a primary purpose of an economic system?

• To regulate government policies

• To determine how resources are allocated

• To promote cultural traditions

• To control population growth

Labelling

Label the curve correctly

Drag labels to their correct position on the image

Price

Quantity

Demand

Multiple Choice

Which of the following best describes the Law of Demand?

• As price increases, demand increases.

• As price decreases, demand decreases.

• As price increases, demand decreases.

• As price decreases, demand stays the same.

Multiple Choice

Which statement is correct about the Law of Demand?

• When the price of a good decreases, quantity demanded decreases

• When the price of a good decreases, quantity demanded increases

Multiple Select

Which of the following can cause a shift in the demand curve?

• Changes in income

• Changes in consumer expectations

• Changes in population

• Changes in the price of the good itself

Multiple Choice

What is the difference between compliments and substitutes in relation to demand?

• Compliments are used in place of each other, substitutes are used together.

• Compliments are bought and used together, substitutes are used in place of each other.

• Both are bought and used together.

• Both are used in place of each other.

Multiple Choice

Which of the following is an example of inelastic demand?

• Buying less cola when the price increases

• Buying more luxury cars when income rises

• Continuing to buy milk even when the price increases

• Buying more generic brands when income falls

Multiple Choice

Which of the following is NOT one of the four factors affecting the elasticity of demand?

• Availability of substitutes

• Limited budget

• Advertising strategies

• Change over time

Open Ended

Reflecting on what you learned about economic systems, what questions do you still have or what would you like to explore further?