Demand

The want or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

When classifying a good or service as having demand, that means that consumers have both the desire for the good or service and ____________.

• the ability to pay for it.

• it is a need, not just a want.

• there is enough supply of the product for them to demand.

• there is no substitute available.

In free market economies, for producers to make a profit, they will want to offer goods and services at the ____ price possible.

• highest

• lowest

• fairest

• cheapest

Consumers serve their own self interest by purchasing the best products at the _____ prices possible.

• highest

• lowest

• fairest

According to the law of demand as price increases what happens to demand?

• increases

• decreases

• unchanged

The relationship between price and quantity demanded is ___.

• inverse

• direct

• unrelated

When an increase in demand occurs, which direction will a demand curve shift?

• up

• down

• left

• right

When a decrease in demand occurs, which way will a demand curve shift?

• up

• down

• left

• right