Demand Review

What does it mean to have an Elasticity of demand greater than 1

• Demand is Inelastic

• Demand is Elastic

• Demand is Unit Elastic

• Demand is Static

Which of the Following might be reasons why demand would be Elastic.

• Many Substitutions

• Few Substitutions

• Luxury Good

• Both Luxury and Many Subs

Why is Insulin have inelastic demand?

• There are many substitutions for it

• People need it to survive

• There are no substitutions for it

• No Subs and people need it to survive

When Total Revenue increases after a price increase then a good or service has:

• Elastic Demand

• Inelastic Demand

• Unit Elastic Demand

• None of the Above

Law of Demand states that when:

• Prices increase Quantity demanded increases

• Prices fall Quantity demanded falls

• Prices rise Quantity demanded falls

• There is no correlation between price and quantity demanded

Price can never change

• Quantity demanded

• Demand

• Quantity Supplied

• None of the Above

Which of the following causes a movement along the demand curve?

• Change in Income

• Expectations of price changes

• Price today

• Change in the price of a goods complement

Eating pizza instead of tacos when the price of tacos increases is an example of:

• Income Effect

• Coriolis Effect

• Substitution Effect

• Butterfly Effect

What happens when consumers buy a DIFFERENT quantity than they did before, at EVERY PRICE?

• Movement along the demand curve

• Shift of the demand curve

• Expectations change

• Shape of the demand curve changes

If gas prices are expected to drop next week what will happen to our demand for gasoline today?

• We will demand more gas

• We will demand less quantity at the current price

• We will demand less gas

• We will demand more