2/22 Demand and Demand Shifts QZ

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

The quantity demanded of a good or service changes at all price levels best describes the concept of

• change in quantity demanded

• elasticity

• change in demand

• demand curve

Elasticity refers to

• how producers of goods and services react to price changes

• how consumers of goods and services react to price changes

• how far a supply of scarce goods can be stretched

• how often the price of a good or service changes when quantity demanded changes

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

• increase
• decrease

Thousands of people leave a small town due to a factory closing down. Sales at the local stores drop. What causes this change in DEMAND?

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in Consumer Tastes/Preferences

• Change in # of Consumers/Population

The law of demand states that

• price and quantity demanded are inversely related

• the larger the number of buyers in a market, the lower will be product price

• price and quantity demanded are directly related

• consumers will buy more of a product at high prices than at low prices

a product that is used or consumed jointly with another product; cereal and milk, peanut butter and jelly

• Demand

• Supply

• Complimentary Good

• Substitute Good

Which of the following will cause an increase in demand for snowboards?

• More costly production methods

• A decrease in the price of lift tickets at resorts in Colorado

• A decrease in consumer income

• A decrease in the population

Imagine sitting down to eat dinner when you are really hungry. So you eat 20 buffalo wings, french fries, and a soda. You are no longer wanting to eat as much food.

This is an example of what?

• Income Effect

• Substitution Effect

• Diminishing Marginal Utility

• Change in Consumer Expectations