Demand Review 10/9

As prices for a product decrease, demand for a product should increase..

• diminishing marginal utility

• elasticity

• income effect

• law of demand

A product may be amazing, but unless consumers are __ and __ to purchase it, it's not in demand.

• willing

• wishing

• able

• planning

A change in the price of a good causes people to buy more or less of an item. This best describes the concept of

• the demand curve

• change in quantity demanded

• change in demand

• elasticity

What is the relationship between the Price and Quantity Demanded?

• Positive Relationship

• Direct Relationship

• Inverse Relationship

• Mixed Relationship

When prices rise for a particular product, consumers will purchase lower-priced similar items..

• income effect

• substitute effect

• diminishing marginal utility

• law of demand

Consider the market for cars in Hong Kong. If the price of gasoline increases then the Demand for cars will

• increase
• decrease

When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes: 

• the cost effect
• the inflationary effect
• the income effect
• the substitution effect

What will happen in relation to demand for swimsuits if the weather is sunny and beautiful? 

• the demand curve shifts to the left
• the demand curve becomes flatter
• the demand curve shifts to the right
• the demand curve becomes steeper

A demand schedule is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each price in a market.

• False

• True

An increase in Demand is located by moving from point ________ to point_________

• Moving from A to B

• Moving from A to C

• Moving from C to A

• Moving from B to A