Ch. 3 Demand

The diagram represents a

• increase in demand
• decrease in demand

Consider the market for cars in Red Wing. If the price of gasoline increases then the Demand for cars will

• increase

• decrease

An decrease in demand for iPhones in Red Wing could be caused by a(n)

• increase in price for Samsung Galaxy

• increase in population in Red Wing

• the price for iPhones is expected to increase next week

• the price of iPhone apps increased

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in

• market size
• price of a substitute good
• price of a complementary good
• tastes and preferences 

If the price of Frozen Yogurt increased then the demand for ice cream will 

• increase
• decrease

A recent scandal in which 1 million fake Chanel hand bags have been discovered. There is in an increase in Louis Vuitton hand bags because

• price of a complement
• price of a substitute
• tastes and preferences
• income

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

The price of gas is expected to increase next week. Then today the demand for gas will

• increase

• decrease

What factor could have caused the demand to decrease?

• incomes increased
• expectation that prices will increase 
• a decrease in the price of a substitute 
• increase in market size

The law of demand refers to how

• demand changes when people's incomes change
• demand changes when the prices of substitutes and complements change
• the quantity demanded changes when the price of the good changes
• the price of the good changes when people's demand for the good changes