Economics 4.2 Change in Demand

Why would McDonald’s go to the trouble and expense of redesigning its restaurants? The company realizes that __________ is changing.

• consumer demand
• the economy is changing
• technology is changing
• food prices are changing
• the workforce is changing

This means the company has to change too, or it risks losing business to __________ that better meet customer demand.

• competitors
• suppliers
• investors
• employees
• government

Such changes in demand have an effect on both the __________ and the demand curve.

• demand schedule
• price level
• quantity supplied
• quantity demanded
• total revenue

When it comes to demand, there are __________ types of changes.

• two
• three
• four
• five
• six

When the price of a product changes while all other factors remain the same, we have a change in the __________ demanded.

• quantity
• total demand
• quantity supplied
• demand curve
• supply schedule

Sometimes other factors change while the price remains the same—similar to the change in __________ in our news story.

• consumer taste
• government policy
• product quality
• income levels
• advertising trends

When this happens, we see a __________ in demand.

• change
• shift
• increase
• decrease
• fluctuation

Look at Figure 4.3 to see what happens when only the __________ changes and everything else remains constant.

• price
• supply
• demand
• quantity
• income

Point a on the demand curve shows that __________ CDs are demanded at a price of $15.

• six
• eight
• ten
• twelve
• five

When the price falls to $10, __________ CDs are demanded.

• 10
• 8
• 6
• 12
• 15