Demand

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in

• market size
• price of a substitute good
• price of a complementary good
• tastes and preferences (popularity)
   

Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will

• increase
• decrease
• not be affected

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

What factor could have caused the demand to decrease?

• incomes increased
• expectation that prices will increase 
• a decrease in the price of a substitute 
• increase in market size

Which item would provide you with the least marginal utility?

• a second copy of the daily newspaper.
• a second large glass of water
• a second hamburger
• a second car.

The demand for a(n) ___ increases as money income increases- that is, the demand curve shifts rightward when consumer income increases.

• normal good
• inferior good
• superior good
• declining good

Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this change?

• Prices or availability of substitutes
• Prices or availability of complementary goods
• Change in the weather or season
• Population (Change in the number of buyers)

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above

Chevy is offering trucks at lower prices, people are buying more trucks because of

• change in demand to expectations
• change in demand due to complements.
• change in demand due to income
• change in quantity demanded due to a change in price.

Consider the market for cars in Hong Kong. If the price of gasoline increases then the Demand for cars will

• increase
• decrease