factors affecting demand

What is the income effect?

• When the IRS takes more of your money when you make more.

• When consumers can buy more if their income goes up.

• When the amount of money you earn increases.

Which is an example of the substitution effect?

• When the price of one item goes up, so the price of another goes up with it

• When the price of pencils goes up, people will buy pens instead

• When someone decides something is popular, they buy more of it.

Which of the following cause a change in demand? (you can pick more than one)

• Consumer Income

• Consumer Tastes

• Number of consumers

What is a market demand curve?

• table showing how much of a product an individual is willing to pay
• table showing how much of a product a market is willing to buy
• graph showing how much of a product an individual is willing to buy
• graph showing how much of a product an market is willing to buy

Skiers flock to a town in the Rockies in January, and restaurant business booms. What factor is affecting demand?

• income
• market size
• consumer taste
• substitutes

The main reason individuals consume goods and services is:

• To increase demand

• To increase personal satisfaction

• To drive the economy

• None of these

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 Tastes
• 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