Demand Review: 11/4/16

The diagram represents a

• increase in demand
• decrease in demand

The law of demand states that as the price increases then 

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

Donald Trump has been elected and the demand for US tourist visas has decreased because of

• market size
• expectations of future prices
• income
• tastes and preferences

Donald Trump has been elected and the demand for US tourist visas has decreased because of

• market size
• expectations of future prices
• income
• tastes and preferences

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

If suddenly, a large population increase occurred, what impact would it have on the housing market?

• prices would remain constant.
• There would be a surplus of homes on the market.
• It would shift the demand curve to the left.
• It would shift the demand curve to the right.

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

• True
• False

Consumers demand more of this type of good when their income rises.

• Normal good
• Inferior good
• Elastic good
• Substitution good

How will the demand curve for iPhone accessories change if the demand for iPhones increases?

• shift up and to the right
• shift down and to the left
• it will not change

Which factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2016 Passat.

• income
• population
• consumer tastes & advertising
• prices of related goods