MJ Substitution Effect

If James and his friends experience the substitution effect, they will respond to a rise in the price of their favorite post-game snack by

• working extra hours to make more money.

• buying less of their favorite snack.

• buying more of their favorite snack.

• choosing another snack food instead of their favorite snack.

The owner of a sandwich shop surveyed her customers on how often they came in, which sandwiches they preferred, and what quantity of sandwiches they ordered. She then added up the quantities demanded by all her consumers at each price. What did she create?

• demand for sandwiches

• a market demand schedule

• the substitution effect

• Dan individual demand schedule

The difference between a market demand curve and an individual demand curve is that the market demand curve

• provides data about only one consumer.

• is curved and not straight.

• provides data about many consumers.

• is usually much shorter than an individual demand curve.

In economics, the concept of demand is defined as the desire to own something

• that has not yet been manufactured or produced.

• and a willingness to pay more than other consumers for it.

• that a manufacturer is capable of producing.

• combined with the ability to pay for it.

The increasing age of the American population is an example of how

• changing demographics can cause demand shifts.

• the law of ceteris paribus works.

• lack of substitutes can blunt demand shifts.

• demand does not always change when prices change.