2.1: 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

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

The diagram represents a

• increase in demand
• decrease in demand

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

Jermac tired of eating fried chicken everyday.

• increase in demand

• decrease in demand

• increase in supply

• no changes in demand

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

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

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in

• Population

• Price of a complementary good

• Consumer tastes and preferences

• Price of a substitute good