Demand and Supply Review Topic Three

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

Generally speaking as the price of a good declines, quantity demanded also decreases.

• True
• False

The law of demand helps explain why people buy more when the price decreases.

• True
• False

The downward slope of a demand curve reflects the fact that, other things constant, price and quantity demanded are

• negatively related
• positively related
• elastic
• inelastic

A change in quantity demanded is shown

• at various points on the demand curve
• with a new demand curve drawn above or below the original demand curve
• with a vertical line

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule
• market demand schedule
• elasticity chart
• supply and demand graph

The demand curve always slopes

• down and to the right
• straight up and down
• down and to the left
• up and to the right

Price goes on ________

• the vertical axis
• the horizontal axis
• at the origin
• the z axis

What goes on the horizontal axis of a demand graph?

• price
• quantity demanded
• quantity supplied
• change in demand

Consumer willingness to replace a costly item with a less costly item is?

• The substitution effect
• the income effect
• Complementary
• unit elastic