3/5 Economics 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

A change in the price of a good causes people to buy more or less of an item. This best describes the concept of

• the demand curve

• change in quantity demanded

• change in demand

• elasticity

The quantity demanded of a good or service changes at all price levels best describes the concept of

• change in quantity demanded

• elasticity

• change in demand

• demand curve

Which of these shows a decrease in the quantity demanded?

• 
• 
• 
• 

The diagram represents a

• increase in demand
• decrease in demand

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

• increase
• decrease

When the price of good A rises, people start to drink good B. In this case, what is good B considered?

• luxury good

• complementary good

• substitute good

• normal good

A decrease in the average incomes of consumers will result in which of the following?

• A decrease in the demand for goods and services

• An increase in the demand for goods and services

• A decrease in the supply of goods and services

• An increase in the supply of goods and services

The phrase "a change in demand" most directly implies a 

• movement along the curve
• movement along the price curve
• change in quantity demanded of a good
• shift in the demand curve