Level 2A - Demand

What does the economic term "utility" mean?

• electricity

• satisfaction

• demand

• possibility

When the price of a normal good goes up, the Law of Demand states that this will be the result

• Quantity Demanded increases

• Quantity Demanded decreases

• Demand is changed

• None of these are correct

Which of the following WILL NOT shift the demand for a product?

• Price

• Population

• Income

• Expectation of Future Events

Which law states that as a person consumes more and more of a good, eventually that person will gain less and less satisfaction from that good?

• Law of Demand

• Law of Supply

• Law of the Land

• Law of Diminishing Marginal Utility

In regards to inferior goods, as the income of a person decreases, what happens to the demand for an inferior good?

• Demand decreases for that good

• Demand increases for that good

• Demand is unchanged for that good

• None of these are correct

An increase in the Demand Curve is a...

• Shift to the Right

• Shift to the Left

• Upward shift

• Downward shift

On a graph, the Demand Curve is shown to have what relationship?

• Direct or Positive

• Inverse or Negative

• Straight line

• None of these are correct

Which of the following would cause a shift to the right for demand of school lunches?

• All students are required to buy school lunch

• Food trucks are allowed in the parking lot during lunch

• Price of lunches goes down

• Report comes out that eating school lunches drops your GPA

Which of the following would cause a shift to the left for demand in the market for MN Twins tickets?

• Twins move their stadium to Duluth

• Twins institute an age limit for attending games

• Twins play all their games at 9am in the morning

• All of these would cause a shift to the left in the demand for tickets

In the market for peanut butter, if strawberry jelly is a complementary good, what would happen to the demand for jelly if the price of peanut butter goes up.

• Demand for jelly shifts to the right

• Demand for jelly shifts to the left

• Demand for peanut butter shifts to the left

• Demand for peanut butter shifts to the right