Demand

When the price of a product increases, a consumer is able to buy less of it. Which effect does this describe?

• Cost Effect

• Inflationary Effect

• Income Effect

• Substitution Effect

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 graph represents which concept of demand

• Change in Price

• Decrease in Demand

• Change in Quantity Demand (Slide)

• Change in Demand (Shift)

The price of coffee increases and people switch to drinking tea. The determinant of demand is

• Income

• Price of Related Goods (Complements)

• Consumer Preferences/Tastes

• Price of Related Goods (Substitutes)

Identify which determinant of demand (Shifter) is involved: Kohl's Black Friday sales are approaching.

• Population

• Complementary goods

• Consumer expectations

• Consumer tastes or preferences

What is the only factor that causes a change in quantity demanded (Slide) along a demand curve?

• population

• income

• price

• tastes and preferences

When the price of hot dogs decreases and the demand for hot dog buns increases, this explains the demand of

• Complementary goods

• Capital Goods

• Substitute Goods

• Consumer Goods

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in

• Population

• Price of Substitute Good

• Price of Complementary Good

• Consumer Preferences/Tastes

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

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in Preferences

• Change in 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