Demand Review

The amount of goods and services people are willing and able to buy at various prices during a given period of time is called

• income effect

• substitution effect

• utility

• demand

The Law of Demand states that

• price and demand are unrelated

• As prices rise, the quantity demanded also rises

• People will always demand more than is supplied

• As prices rise, the quantity demanded falls

When prices rise and people have less purchasing power, they tend to buy less. This is call the

• demand effect

• income effect

• substitution effect

• doppler effect

When the price of a product rises, people tend to look for and purchase similar products that are less expensive. This is called the

• demand effect

• income effect

• substitution effect

• sale effect

If the price of a product increases significantly, but demand remains about the same, most economists would say that product has a/an _______ demand

• Fantastic

• Plastic

• Elastic

• Inelastic

A graph showing the price and quantity demanded for a specific product is called the

• PPC

• Market Analysis Table

• Demand curve

• Demand schedule

If a good has many substitutes, demand for that good is likely to be

• Elastic

• Inelastic

• Not affected

• Insignificant

Coach Biggs finds out that the price of baby food will be going up next week. He usually buys about 10 jars per week. You could expect Coach Biggs’ demand for baby food to do what now?

• No change

• increases

• decreases

• becomes vertical

The law of demand is illustrated by a demand curve that is _________, because price and quantity demanded have a/an _________ relationship

• Upward sloping, inverse

• Upward sloping, direct

• Downward sloping, direct

• Downward sloping, inverse

Which of the following would tend to have the most ELASTIC demand

• Diapers

• Milk

• Baby Formula

• Baby Air Jordans