Demand

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 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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The diagram represents a

• increase in demand
• decrease in demand