Econ review

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

Which of these best describes the law of demand?

• if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up

• if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down

• there is no law of demand, each situation is unique and demand and prices cannot be predicted

• prices will go up for certain goods when quantity demanded goes up and vice versa

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

Which of these shows a decrease in the quantity demanded?

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• 
• 
• 

Which of these shows an increase in the quantity demanded?

• 
• 
• 
• 

The diagram represents a

• increase in demand
• decrease in demand

If the price of Frozen Yogurt increased then the demand for ice cream will 

• increase
• decrease

The downward slope of a demand curve

• represents the law of demand
• shows that as the price of a good rises, consumers increase the quantity they demand
• indicates how the quantity demanded changes when incomes rise and the good is a normal good
• indicates how demand changes when incomes rise and the good is a normal good

The phrase "a change in demand" most directly implies a 

• movement along the curve
• movement along the price curve
• change in quantity demanded of a good
• shift in the demand curve

How is a decrease in the price of a good illustrated on a demand graph?

• The demand curve shifts to the right.

• The demand curve shifts to the left

• There is upward movement along the demand curve

• There is downward movement along the demand curve.