2.3 Demand

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 (popularity)
   

An decrease in demand for iPhones in Hong Kong could be caused by a(n)

• increase in price for Samsung Galaxy
• increase in population in HK
• the price for iPhones is expected to increase next week
• the price of iPhone apps increased

Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will

• increase
• decrease
• not be affected

The law of demand states that as the price increases then 

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

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

Donald Trump has been elected and the demand for US tourist visas has decreased because of

• market size
• expectations of future prices
• income
• popularity (tastes and preferences)

Which item would provide you with the least marginal utility?

• a second copy of the daily newspaper.
• a second large glass of water
• a second hamburger
• a second car.

The demand for a(n) ___ increases as money income increases- that is, the demand curve shifts rightward when consumer income increases.

• normal good
• inferior good
• superior good
• declining good

Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this change?

• Prices or availability of substitutes
• Prices or availability of complementary goods
• Change in the weather or season
• Population (Change in the number of buyers)

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above