Determinants of Demand

States that people buy a different quantity of a product if that product’s price changes, appearing as a movement along the demand curve.

• Change in demand

• Change in supply

• Change in quantity demanded

• Change in quantity supplied

The effect that increasing or decreasing prices has on the buying power of a person is better known as....

• Income Effect

• Substitution Effect

• Diminishing Marginal Returns

• Inflation

Goods for which demand goes down as income goes up are better known as....

• Inferior Goods

• Normal Goods

• Public Goods

• Private Goods

This is a product that can be used in place of another product:

• Product Good

• Complementary Good

• Related Good

• Substitution

All of the following are examples of complements EXCEPT

• butter and margarine

• cameras and film

• peanut butter and jelly

• flashlights and batteries

Jennifer Lopez is seen wearing a new short and sleek dress. People now want this dress. Which demand determinant is this most likely to fall under?

• Change in Consumer Income

• Change in Consumer Preference

• Change in Price of Substitute Good

• Change in Consumer Price Expectations

Oreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under?

• Change in Price of Complementary Good
• Change in Price of Substitute Good
• Change in Consumer Price Expectations
• Change in Number of Consumers in the Market

The government is giving every individual 18 and above an extra $1,000.00 this year. What determinant of demand does this likely fall under?

• Change in Consumer Tastes
• Change in Consumer Price Expectations
• Change in Number of Consumers in the Market
• Change in Consumer Income

I know that the iPhone 8 is coming out next year but really need a phone badly. I'm thinking about buying an iPhone 7 when the new iPhone comes to the market because it will be much cheaper than today's price. What determinant of demand does this suggest?

• Change in Price of Complementary Good
• Change in Consumer Price Expectations
• Change in Number of Consumers in the Market
• Change in Consumer Income

McDonald's is having a special on their Big Mac purchases this week. Every Big Mac is $3 cheaper! When burger prices go down, this means you can buy more fries and a drink. What demand factor does this relate to?

• Change in Consumer Tastes
• Change in Price of Substitute Good
• Change in Price of Complementary Good
• Change in Number of Consumers in the Market