Quiz 2.1 Demand 1

The Law of Demand states that

• more will be purchased at low prices than at high ones
• less will be purchased at low prices than at high ones.
• approximately the same amount will be purchased at low prices than at higher prices.
• all people have the ability, desire, and willingness to buy.

The demand curve is always

• upward sloping
• downward sloping
• level.
• irregular.

Buying only one instead of two sodas at lunch time describes what concept?

• demand
• consumerism
• marginal utility
• diminishing marginal utility

All of the following must exist for there to be demand EXCEPT

• a desire to buy a product
• producers to sell a product.
• an ability to buy a product
• a willingness to buy a product.

Which of the following statements does NOT describe the demand curve?

• Prices are listed on the vertical axis
• Quantities demanded are listed on the horizontal axis.
• The demand curve represents the various combinations of prices and quantities demanded that could occur in the market.
• It shows the demand for a product over time rather than at a given point in time.

Which of the following conditions could explain the shift in the demand curve shown on the graph?

• Farmers harvested a bumper crop of tomatoes.

• Shoppers learned that cans of cooked tomatoes are spoiled.

• Surveys found that people are eating more cooked tomatoes.

• Eating cooked tomatoes was found to have more health benefits.

Which of the following would most likely cause the shift shown on the graph?

• A new, popular model of cell phone just came on the market.

• The cost of parts for cell phones has gone up.

• Cell phone salesmen are working overtime to sell their phones.

• The cell phone company made a large profit this year.

How does the demand curve respond to an increase in demand?

• The curve shifts left
• The curve shifts right.
• There is movement along the curve
• There is no change in the curve.