Chapter 4 - Demand

Demand Curves

• slope upward from left to right

• slope downward from left to right

• show a positive relationship

• slope downward from right to left

Which of the following could increase demand for a good?

• higher birthrate

• increased immigration

• higher prices in the future

• all of the above

A shift of the demand curve represents

• a movement on the demand curve

• a change in the quantity demanded

• a change in demand

• all of the above

In economics, demand means

• willingness and desire to buy a good

• willingness and ability to buy a good

• ability to buy a good

• willingness to buy a good

If the number of buyers in the market increases, which of the following will happen?

• The supply in the market will increase

• The supply in the market will decrease

• The demand in the market will increase

• The demand in the market will decrease

What will happen in the car market if consumers expect higher prices in the near future?

• The demand for cars will decrease

• The demand for cars will increase

• The supply of cars will drop

• The demand for cars will not change

When goods are substitutes, which of the following occurs?

• The demand for one good moves in the opposite direction as the price of the other good

• The demand for one good does not affect the price of the other

• The demand for one good moves in the same direction as the price of the other good

• The supply for one good moves in the opposite direction as the price of the other good

With complementary goods, which of the following occurs?

• The demand for one good moves in the same direction as the price of the other good

• The demand for one good moves in the opposite direction as the price of the other good

• The demand for one good does not affect the price of the other

• The supply of one good moves in the opposite direction as the price of the other good

A normal good

• has not been damaged

• will be purchased, regardless of changes in income

• will be in higher demand if a person's income increases

• will be in higher demand if a person's income decreases

A change in quantity demanded can be caused by

• income

• preferences

• price

• price of a substitute