Demand

Which concept of demand does the graph represent?

• Change in Price

• Change in Demand (Shift)

• Decrease in Demand

• Change in Quantity Demand (Slide)

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

What is the effect on demand when a product becomes a necessity for consumers?

• Demand becomes perfectly elastic

• Demand decreases

• Demand becomes inelastic

• Demand remains constant

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

If the price of gas goes up and total revenue goes up, what does that say about the elasticity of gas?

• Gas is Elastic

• Gas is Inelastic

• Gas is Unitary Elastic

When consumers react to an increase in a good's price by consuming less of that good and more of other goods.

• Cost Effect

• Income Effect

• Substitution Effect

• Inflationary Effect

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

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

• Population

• Complementary goods

• Consumer expectations

• Consumer tastes or preferences

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