Demand

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

• supply

• equilibrium

• demand

• quantity demanded

The diagram represents a

• increase in demand
• decrease in demand

Consider the market for cars in Hong Kong. If the price of gasoline increases then the Demand for cars will

• increase
• decrease

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 

If the price of Frozen Yogurt increased then the demand for ice cream will 

• increase
• decrease

The law of demand states that as the price increases then 

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

The price of petrol/gas is expected to increase next week. Then today the demand for petrol/gas will

• increase
• decrease

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

Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.