Demand (IB)

Which combination of events is most likely to leave the demand curve for a normal good in the same position?

• a decrease in consumer incomes and an increase in the price of a substitute good

• a decrease in consumer incomes and an increase in the price of the good

• an increase in consumer incomes and an increase in the price of a substitute good

• an increase in consumer incomes and an increase in the price of the good

The demand for a product is inversely related to its price, ceteris paribus.

What does ceteris paribus mean in this context?

• Factors affecting demand other than price are held constant.

• Factors affecting price other than demand are held constant.

• Price changes result from changes in demand.

• Price falls result in increased quantity demanded.

Why does an individual's demand curve generally slope downwards to the right?

• The additional satisfaction an individual gets from consuming most goods decreases as

  consumption increases.

• The additional satisfaction an individual gets from consumption decreases as income rises.

• The individual has finite income which is used to attempt to satisfy many wants.

• For most goods the price charged by producers falls as the quantity purchased increases.

Demand curves are drawn ceteris paribus. Which 'other things' are not required to remain the same when an individual's demand curve for ice cream is constructed?

• the consumer's income

• the consumer's tastes and preferences

• the price of fresh fruit

• the price of ice cream

Match how the following factors may affect the demand for designer sports shoes:

Groups:

(a) Rightward shift

,

(b) Leftward shift

• There is an increase in income level

• Competitor luxury brand slashes the prices

• The brand offers a 50% discount for the show laces

• An instagram influencer wears the shoes

• The design goes out of style

• The shoes receive negative reviews from professional athletes

What causes the demand curve for an inferior good to shift to the right?

• a decrease in consumer incomes

• a decrease in income tax

• a decrease in the price of a substitute good

• a decrease in the price of the good

What could not cause a shift in an individual's demand curve for good Z?

• a change in advertising expenditure on Z

• a change in the individual's income

• a change in the individual's tastes

• a change in the price of Z

A bus journey is considered an inferior good in a relatively rich country such as Singapore but a normal good in a relatively poor country such as Tanzania.

In which direction would an increase in incomes in both countries cause the demand curve for bus journeys in Singapore and Tanzania to shift?

• A

• B

• C

• D

The demand curve for new cars in a country shifted to the left.

Which change could have caused such a shift?

• an increase in real disposable income

• an increase in the interest rate

• an increase in the price of new cars

• an increase in the price of train travel

Sketch a demand and supply diagram to indicate how adverse weather conditions may affect the market of tomatoes in the UK.