Demand

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

• supply

• equilibrium

• demand

• quantity demanded

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

• The demand curve shifts to the right.

• The demand curve shifts to the left

• There is upward movement along the demand curve

• There is downward movement along the demand curve.

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

Market demand curves are obtained by

• determining the price each consumer is willing to pay for the good & summing those prices across all consumers
• observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph
• summing the quantities every consumer is willing to buy at each different price
• observing the behavior of an individual consumer in a market

The law of demand says that when the price of a product rises, the quantity demanded decreases. Why do people buy fewer CDs if the price of a CD rises? 

• When the price rises, people get less pleasure from listening to music
• If CDs become more expensive, people switch to relatively less expensive alternative goods, such as cassette tapes
• Higher prices just turn people off
• Because CDs are a normal good

Which graph below shows the SUPPLY CURVE?

• A
• B
• C
• D

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

A decrease in the price of a good will

• increase supply.
• decrease supply.
• increase quantity supplied.
• decrease quantity supplied.