Chapter 4 -2&3 Econ Quiz (Demand and Shifting Demand)

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

• consumption

• demand

• elasticity

• allocation

What are inferior goods?

• goods that are not well produced

• goods that no one wants to buy

• goods for which the demand rises when income falls

• goods for which the demand falls when income rises

How is future price related to current demand?

• If the price is expected to rise, current demand will drop.

• If the price is expected to fall, current demand will rise.

• If the price is expected to rise, current demand will rise.

• Future price is not related to current demand.

What kind of table lists the quantity of a good that a person will buy at different prices?

• demand schedule

• demand curve

• market demand schedule

• market demand curve

What is a basic principle of the law of demand?

• The higher the price, the more people will want the good.

• Everyone has a limited income that they will spend.

• When a good’s price is lower, people will buy more of it.

• Services are of interest in the same way that goods are.

A shift in the demand curve means which of the following?

• a change in demand at every price

• a rise in prices

• a decrease in both price and quantity demanded

• a change in consumer income

When prices rise, which of the following happens to income?

• It goes down.

• It buys less.

• It rises to meet prices.

• It is used to buy different things.

Which of the following events could cause the demand curve for sports magazines to shift to the right?

• The publisher cuts the price of an issue from $3.95 to $2.50.

• The price of an issue of a popular computer game magazine rises from $2.95 to $3.95.

• A star basketball player interests thousands of people in professional sports for the first time.

• A local library buys a subscription to the sports magazine for its reading room.

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 of movie tickets will increase.

• The demand curve for movie tickets will move left.

• The quantity demanded of movie tickets will decrease.

Alex receives a raise at work and continues to work the same number of hours each week. His demand for $3 t-shirts, which he considers an inferior good, will

• increase.

• decrease.

• stay the same.

• have no relation to his income.