Supply & Demand with Econbob

__________ is the different quantities of goods that consumers are willing and able to purchase.

• demand

• utility

• quantity demanded

• consumer desire

What is a basic principle of the Law of Demand?

• As price increases, demand also increases

• As price increases, quantity demanded decreases

• As price increases, quantity demanded decreases

• As price increases, demand decreases

If price increases for a product, consumers will buy less of that product and more of another ________ product.

• substitute

• complement

• normal

• inferior

The Law of Diminishing Marginal Utility states that as you consume more of any good, the additional satisfaction you receive will

• increase with each new unit consumed

• decrease with each new unit consumed

• stay the same with more units consumed

• not make a difference on the margin

The demand curve is ________ sloping, showing the inverse relationship between price and quantity demanded.

• horizontal

• vertical

• downward

• upward

Market demand comes from

• what individual consumers desire

• all consumer desires in a market

• productive efficiency

• price decreases

When there is a change in price, there is also a change in __________ supplied or demanded.

• shifters

• quantity

• utility

• allocation

________ DOESN'T SHIFT THE CURVE!

• income

• technology

• price

• population

As income increases, demand increases -- but as income decreases, demand also decreases for this type of good:

• substitute

• complement

• inferior

• normal

For inferior goods, as income increases, demand decreases. As income decreases, demand will ________

• increase

• decrease

• stay the same