Year 10 Economics: Week 5 Quiz

The law of demand says that when the price of a product rises, the quantity demanded decreases. Why do people buy fewer CDs if the price of a CD rises? 

• When the price rises, people get less pleasure from listening to music
• If CDs become more expensive, people switch to relatively less expensive alternative goods, such as cassette tapes
• Higher prices just turn people off
• Because CDs are a normal good

Market demand curves are obtained by

• determining the price each consumer is willing to pay for the good & summing those prices across all consumers
• observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph
• summing the quantities every consumer is willing to buy at each different price
• observing the behavior of an individual consumer in a market

A demand curve illustrates the

• differences in price charged by different stores.
• quantities demanded at each price by consumers.
• differences in demand for different products.
• products that are most in demand.

Substitutes are goods

• that are bought and used together.
• used in place of one another.
• that cannot be replaced.
• that cause a shift in the demand curve.

A drop in price will

• increase the quantity demanded of goods.
• decrease the quantity demanded of goods.
• not affect the quantity demanded of goods.
• change the law of demand.

When factors other than price cause demand to fall, the demand curve

• does not shift.
• shifts to the left.
• shifts upward.
• shifts to the right.

Which of the following would NOT cause a demand curve to shift?

• a change in a consumer's income level
• a change in population
• a change in a consumer's expectations
• a change in the price of a product.

If a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?

• it will go up
• it will go down
• it will stay the same
• what does this have to do with the price of tea in China?

A reduction in the overall population of an area will likely cause a demand curve to shift

• left
• right
•  up
• not at all

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