Demand

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 desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

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

Label each part of the Demand Graph

a

b

c

Price

Demand

Quantity

What does this curve represent?

• supply

• equilibrium

• demand

• surplus

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs

• Buy fewer CDs

• Quantity demanded will not change

Plot each point from the provided demand schedule:

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

According to the Law of Demand, when prices drop ___.

• demand will also drop.

• demand will increase.

• quantity demanded is unchanged.

• supply increases.