Law of Demand

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

Which of these best describes the law of demand?

• if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up

• if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down

• there is no law of demand, each situation is unique and demand and prices cannot be predicted

• prices will go up for certain goods when quantity demanded goes up and vice versa

The downward slope of a demand curve

• represents the law of demand
• shows that as the price of a good rises, consumers increase the quantity they demand
• indicates how the quantity demanded changes when incomes rise and the good is a normal good
• indicates how demand changes when incomes rise and the good is a normal good

How is a decrease in the price of a good illustrated on a demand graph?

• There is downward movement along the demand curve.

• There is upward movement along the demand curve

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)
   

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

• increase
• decrease
• not be affected

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

A good used in place of another good to meet the same need is called

• Complementary good
• Capital Good
• Substitute Good
• Consumer Good

Consumers are willing to buy more at lower prices than higher prices

• law of demand

• scarcity

• law of inverse

Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are 

• complements
• substitutes
• inferior goods
• resources