Demand Test

Which of the following is NOT a determinant of Demand?

• The amount available

• Income

• Price of related goods

• Expectations

• Number of buyers

What are related goods

• ONLY Goods that can be substituted for the original product

• ONLY Goods that can be used with the original product

• Both Compliments or substitute goods

• NEITHER

What is a substitute good?

• ONLY Goods that can be substituted for the original product

• ONLY Goods that can be used with the original product

• Goods that substitute teachers buy

• There is no such thing as a substitute good

What is a Complimentary good in Economics?

• ONLY Goods that can be substituted for the original product

• ONLY Goods that can be used with the original product

• Goods that substitute teachers buy

• There is no such thing as a complimentary good

An increase in demand that results in a curve shift, usually shifts the demand curve in what direction?

• Left

• Right

• Up

• Down

A decrease in demand that results in a curve shift, usually shifts the demand curve in what direction?

• Left

• Right

• Up

• Down

What does NOT cause a demand curve to shift left or right?

• An increase in population

• Price of related goods

• Expectations

• Income

• Taste/Preferences

What does NOT cause movement along the demand curve?

• Price of substitute goods

• Price of complementary goods

• Expectations

• Price change of original good

What is elasticity?

• An item's demand is affected by price changes.

• An item's demand is not affected by price changes.

• The cheaper an item is the more people buy (an inverse relationship with price and demand)

• a jump in demand based off of predictions

What is inelasticity?

• An item's demand is affected by price changes.

• An item's demand is not affected by price changes.

• The cheaper an item is the more people buy (an inverse relationship with price and demand)

• a jump in demand based off of predictions