Demand Review

You buy Halloween candy because it's on sale. You eat the first bag of candy quickly but by the time you get to the 4th bag, you start to feel sick. What is this an example of?

• Elasticity

• The Law of Demand

• Diminishing Marginal Utility

• Quantity

The quantity demanded of a good remains constant when the price rises from $5.00 to $20.00 per unit. Is the product elastic or inelastic?

• Elastic

• Inelastic

Insulin is an inelastic good. What will happen to demand if prices rise from $1 per dose to $10 per dose.

• Demand remains the same

• Demand in

• Demand decreases

Inelastic products are very responsive to changes in price.

• True

• False

The Law of Diminishing Marginal Utility states that utility increases with each unit gained.

• True

• False

What do we call a change in price AND demand?

• Shift 

• Movement

What do we call a change in demand but price stays the same?

• Shift 

• Movement

Which TWO graphs show both price and demand changing?

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Which TWO graphs show only demand changing and price staying the same?

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Which TWO graphs are called a SHIFT in demand?

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