the Law of Demand

According to economics, what happens to demand when prices rise?

• Demand stays the same

• Demand rises

• Deflation occurs

• Demand falls

______________ is a graph that shows the amount of a product that would be bought at all prices in the market.

• Supply Curve

• Law of Demand

• Demand Curve

• Market demand

Some products, such as DVDs and DVD players, are called __________ because demand for one moves in the opposite direction as the price of the other.

• substitutes

• surplus

• elastic

• complements

According to the law of demand, quantity demanded and price __________.

• Move in the same direction.

• Depend on marginal utility.

• Move in opposite directions.

• Are not related.

Total demand may change if more consumers enter the market, consumer tastes change, or ____.

• Consumer expectations change.

• Producers supply unpopular products.

• Demand is inelastic .

• Supply remains the same.

Which of the following is not necessary for demand to exist?

• Desire for a good or service

• Willingness to purchase a good or service

• Competition to produce a good or service

• Resources to produce a good or service

Which principle results in the lowering of a good’s price over time?

• marginal utility

• seller's market

• additional satisfaction

• diminishing marginal utility

If a new high-rise building is constructed and hundreds of tenants move in, what is most likely to happen to the market demand in the neighborhood?

• It will remain the same

• It will decrease

• It will increase

• It will become unstable

The demand for which of the following items is likely to be inelastic?

• a car

• electricity

• a fur coat

• a computer

Which of the following pairs is not an example of substitutes?

• Margarine for butter

• Pens for pencils

• Coffee for tea

• Basketballs for soccer balls