Lesson 5 Demand Review

The law of demand says quantity demanded is affected as...(2 answers)

• ...price increases quantity decreases

• ...quantity increases price decreases

• ...price changes elasticity does not react

• ...price increases quantity increases

Quantity demanded moves along the demand curve...

• in response to changes in price

• as PI3CS shifts

• as elasticity reacts

• as supply changes

When price increases a lot and consumers do not significantly change their buying habits of that product, that product has what?

• Elastic Demand

• Complementary Effect

• Sensitive Demand

• Inelastic Demand

When a goods substitute changes in price (Kraft Mac n Cheese prices decrease), what happens?

• Demand for Meijer Mac & Cheese increases

• Demand for Meijer Mac & Cheese decreases

• Supply for Meijer Mac & Cheese increases

• Supply for Meijer mac & Cheese decreases

What would happen to the apple market if the price of caramel dip decreases?

• Demand for apples increases due to complementary effect

• Demand for apples decreases due to complementary effect

• Demand for apples increases due to substitute effect

• Demand for apples decrease due to complementary effect

If demand shifts increases (2 answers)

• Higher price

• Higher quantity

• and moves to the right

• and moves to the left

When demand decrease shifts it moves

• Left

• Right

When a new laptop comes out what happens to the old model?

• Demand decreases due to substitute effect

• Supply increases due to technology

• Demand increases due to number of suppliers

• Supply decreases due to complementary effect

If people decide they want a different product because the original product when up in price and switch brands, what happens to demand for the new product?

• Demand increases due to substitute effect

• Demand increases due to complementary effect

• Demand decreases due to consumer tastes

• Demand decreases due to substitute effect

On this supply and demand schedule the equilibrium quantity is...because the quantities are EQUAL

• 40

• 50

• 60

• 70