Law of Demand

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

The graph represents which concept of demand

• Change in price

• Change in quantity demanded

• Decrease in demand

• Increase in demand

Which concept of demand does the graph represent?

• Decrease in price

• Decrease in demand

• Demand curve shift

• Decrease in quantity demanded

What happens when a TV's price goes up?

• The demand curve shifts left

• The demand curve shifts right

• The quantity demanded increases

• The quantity demanded decreases

Which of the following is an example of a change in demand?

• When people decide to save their money.

• When people decide not to buy a good because it's price decreased.

• When people decide not to buy a good because it's price increased.

• When people change what they are willing and able to spend for a good.

If the demand for a good increases when people's incomes increase,

• This is an inferior good

• This is a normal good

• The good's demand curve shifts to the left

• The good is a neutral good

Consider the market for cellular phones. Which of the following shifts the demand curve to the left?

• studies showing using cellular phones can cause brain cancer

• a decrease in the price of cellular phones

• a decrease in the quantity demanded of cellular phones

• an increase in the services provided by cellular phones, such as text messaging

The price of coffee increases and people switch to drinking tea. Coffee and tea are

• Neutral goods

• Substitute goods

• Complementary goods

• Normal goods

What is the only factor that causes a change in quantity demanded (Slide) along a demand curve?

• Income

• Change in price

• Consumer tastes and preferences

• Number of consumers

When the price of hot dogs decreases and the demand for hot dog buns increases, this explains the demand of

• Complementary goods

• Substitute goods

• Capital goods

• Consumer goods