Demand Practice

Which statement describes the law of demand?

• As prices rise, quantity demanded decreases

• As prices rise, demand decreases.

• As prices fall, quantity demanded decreases.

• As prices fall, demand decreases.

Which is an example of the Law of Demand at work?

• The price of the pizza goes up when the price of cheese goes up.

• Demand for pizza goes down when tacos become more popular

• The price of pizza falls when the demand for pizza falls

• Demand for pizza rises when the price of pizza falls

What causes a shift in the demand curve?

• A decrease in price

• An increase in price

• A change in an area other than price (an external force changed)

• A change in price and availability

The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.

• Supply

• Demand

• Factor of Production

• Production

The market equilibrium price is the price at which

• surpluses depress the number of goods supplied

• shortages and surpluses will have no effect on the market

• the government will not intervene in the market

• the quantity demanded is the same as the quantity supplied

What is the Equilibrium Price?

• 1

• 2

• 3

• 4

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

When the demand curve shifts to the left, this suggests demand has

• increased

• decreased

• Quantity demanded has increased

• Quantity demanded has decreased

When the demand curve has shifted to the right, this suggests demand has

• increased

• decreased

• quantity demanded has increased

• quantity demanded has increased

This graph represents a(n):

• Increase in quantity supplied

• Increase in supply

• Decrease in quantity supplied

• Increase in quantity demanded