Demand, Supply, and Prices Review

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

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

Marty just finished creating a market demand schedule for his hardware store. Which of the following is he most likely trying to determine?

• How many tools he sold last year to his customers

• which contractors are the best customers of his products

• how many tools are sold to all consumers in the market at various prices

• which of his competitors is the greatest threat to his business

If Tino responds to a sharp increase in his transportation costs by buying fewer clothes, he is demonstrating

• horizontal demand

• an individual demand schedule

• the income effect

• the substitution effect

"ceteris paribus" means demand will change when price changes

• no matter what other factors may influence the market

• if other market factors remain constant

• only if the supply also does not change

In general, a decrease in consumer income will have what effect on demand for normal goods?

• it will have no effect

• it will cause demand to rise

• it will cause demand to fall

• it will demand to fluctuate sharply

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

Which of the following is the best example of substitute for movie tickets?

• inferior goods

• jewelry

• takeout pizza

• rentals of on-demand programming

A change in demand in demand for one good will have what effect on its complement?

• no effect

• different effects at different times

• the same effect

• the opposite effect