Topic 3 Lessons 1-2: Demand 23-24

Which of the following is a non-price determinant (shifter) of demand?

• Productivity
• Consumer Income
• Price Ceiling
• Subsidy

The price of gasoline increases from $3 per gallon to $4 per gallon. What would happen to the demand for gasoline? (Think carefully)

• It would decrease and shift the curve to the left
• It would increase and shift the curve to the right
• The curve would not shift you would simply move up the curve to the left
• The curve would not shift you would simply move down the curve to the right

Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas are higher. How would your demand for vanilla pudding be affected by this?

• It would decrease.
• It would increase.
• It would be unaffected
• There is insufficient information given to answer the question.

The law of demand states (all other things being equal), as the price of a good or service increases:

• demand increases
• supply increases
• quantity demanded increases
• quantity demanded decreases

What is difference between changes in quantity and changes in demand?

• changes in quantity is a movement along the curve
• changes in demand mean a shift of the curve
• changes in demand mean a new quantity at every price
• all the answers are correct

What is the demand elasticity for gasoline?

• elastic
• inelastic

What is the demand elasticity for pizza?

• inelastic
• elastic

What is the demand elasticity of insulin for a diabetic?

• elastic
• inelastic

What is the demand elasticity of a business traveler who must find a flight to make it to a meeting the next day at 10:00 a.m.?

• inelastic
• elastic

Which of the following will NOT cause the demand for Snickers to change (shift)?

• a change in the price of Snickers
• a change in the price of Hershey bars
• an increase in consumer incomes
• a decrease in consumer incomes