The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

Which of these best describes the law of demand?

• if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up

• if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down

• there is no law of demand, each situation is unique and demand and prices cannot be predicted

• prices will go up for certain goods when quantity demanded goes up and vice versa

A change in the price of a good causes people to buy more or less of an item. This best describes the concept of

• the demand curve

• change in quantity demanded

• change in demand

• elasticity

The quantity demanded of a good or service changes at all price levels best describes the concept of

• change in quantity demanded

• elasticity

• change in demand

• demand curve

Elasticity refers to

• how producers of goods and services react to price changes

• how consumers of goods and services react to price changes

• how far a supply of scarce goods can be stretched

• how often the price of a good or service changes when quantity demanded changes

Which of these demonstrates elastic demand?

• a sharp increase in the price of milk causes a large drop in the quantity demanded for milk

• the price of homes steadily increase but the quantity demanded for homes does not change

• car dealerships cut prices to clear out previous year models and consumers rush to dealerships to take advantage of the sales

• gas prices increase in the summer as more people want to go on road trips but the increases do not deter people from buying less gas

Which of these demonstrates inelastic demand? (multiple answers)

• a cold snap destroys an apple crop causing prices to jump, however, people still buy apples and quantity demanded does not change

• Super Bowl tickets hit record high prices but are still sold out in a matter of minutes and starting going for even higher prices on resale sites

• concert tickets are not selling well, so the venue drops prices by 80%; the tickets sell out shortly thereafter

• a restaurant starts charging a $10 delivery fee, delivery orders drop by 50% in the first month

Which of these shows a decrease in the quantity demanded?

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Which of these shows an increase in the quantity demanded?

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Which of these demonstrates inelastic demand?

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