Demand & Elasticity Review

What is the definition of demand?

• The amount of goods available for sale.

• The willingness and ability to buy something.

• The total revenue generated by a company.

• The cost of producing a good or service.

What does the Law of Demand state?

• As the price of a good rises, the quantity demanded will rise.

• As the price of a good falls, the quantity demanded will fall.

• As the price of a good rises, the quantity demanded will fall.

• As the price of a good falls, the quantity demanded will remain the same.

According to the Law of Demand, what happens to the quantity demanded when the price falls?

• The quantity demanded will fall.

• The quantity demanded will rise.

• The quantity demanded will remain the same.

• The quantity demanded will fluctuate.

Which of the following symbols correctly represents the Law of Demand?

• P↑ QD↑

• P↓ QD↓

• P↑ QD↓

• P↓ QD↔

What does "Quantity Demanded" (Qd) refer to?

• The total amount of goods produced in a market.

• The amount of a good you demand at a certain price.

• The amount of money spent on goods.

• The number of suppliers in a market.

What does a Demand Schedule show?

• The quantity demanded at various prices

• The supply available at various prices

• The total revenue at various prices

• The cost of production at various prices

What happens to the quantity demanded (Qd) as the price increases from $1 to $7?

• The quantity demanded increases

• The quantity demanded remains the same

• The quantity demanded decreases

• The quantity demanded fluctuates

What does a demand curve show?

• The quantity demanded at various prices

• The supply available at various prices

• The total revenue at various prices

• The equilibrium price and quantity

What is typically plotted on the vertical axis of a demand curve?

• Quantity

• Price

• Time

• Revenue

What is typically plotted on the horizontal axis of a demand curve?

• Quantity

• Price

• Time

• Revenue