Chapter 4 Demand

Which of the following best explains the Pc of "CHEAP"?

• Price of complement

• Price of substitutes

• Price of the product

• Price does not apply

Which of the following best explains the Ps of "CHEAP"?

• Price of substitute

• Price of complement

• Price of the product

• Price does not apply

Identify the correct changes to be made according to the following scenario:

The population of McKinney increases 5%. What will happen to demand for homes?

• Demand will increase

• Demand will decrease

• Only the Quantity demanded will decrease because the price will increase

• Only the Quantity demanded will increase because the price will drop

Identify the correct changes to be made according to the following scenario:

The price of skis drops 50%. What is the effect on the demand for ski accessories?

• Demand will increase

• Demand will decrease

• Only the Quantity demanded will decrease because the price will increase

• Only theQuantity demanded will increase because the price will decrease

When illustrating the law of demand the curve should go down and to the left.

Group of answer choices

• False

• True

Which of the following best defines the behavior of demand?

• willingness and ability to buy a good or service

• having enough money to buy a good or service

• the desire for a good or service

• willingness and ability to sell a good or service

What is the basic principle of the law of demand?

• When a good’s price is lower, people will buy more of it.

• Everyone has a limited income that they will spend.

• Services are of interest in the same way that goods are.

• The higher the price, the more people will want the good

How is future price related to current demand?

• If the price is expected to rise, current demand will rise.

• Future price is not related to current demand

• If the price is expected to rise, current demand will drop.

• If the price is expected to fall, current demand will rise.

What is the difference between a movement and a shift change?

• movement is Price change and a shift occurs with a change in CHEAP

• movement occurs when there is a change in CHEAP and a shift occurs when there is a change in Price

• a change in Price causes a movement and a shift

• a change in CHEAP causes a movement and a shift

Which of the following best explains the A "CHEAP"?

• consumer incomes

• consumer numbers

• consumer preferences

• consumer expectations