Topic 3.1 and 3.2 Quiz

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule
• market demand schedule
• elasticity chart
• supply and demand graph

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

• an individual demand schedule

According to the law of demand, when the price of pizza goes up,

• consumers will buy less pizza.

• consumers will save more money.

• pizza restaurants will stop making pizza.

• pizza restaurants will make more money.

Juanita has noticed that the price of bagels has gone up. Because of this, she has decided to buy a less expensive yogurt every morning for her breakfast. This is an example of the

• income effect

• law of demand

• substitution effect

• market demand schedule

Study the demand curves below. If the price of a slice of pizza decreased from $4.00 to $2.00, how would that change the number of slices of pizza demanded each day by the market?

• The demand would increase by 2 slices per day.

• The demand would decrease by 2 slices per day.

• The demand would increase by 100 slices per day.

• The demand would decrease by 100 slices per day.

The desire to own something and the ability to pay for it

• income effect

• demand

• substitution effect

• demographics

States that when a price for a product goes down, the demand will go up. When the price of a product goes up, the demand for it will go down.

• market demand schedule

• substitution effect

• Law of demand

• income effect

If the price of gasoline goes up, I feel like I have less money (because I do!), and so I cut back on my number of trips, or I buy the same amount of gas but less of other things I would usually get.

• market demand schedule

• income effect

• substitution effect