Understanding Demand in Economics (Shift in Demand)

Which of the following does not cause a shift in the demand curve? a) Change in income b) Change in tastes and preferences c) Change in the price of the product d) Change in population size

• Change in consumer expectations

• c) Change in the price of the product

• Change in the availability of substitutes

• Change in government regulations

What happens when there is an increase in demand? a) The demand curve shifts to the left b) The supply curve shifts to the right c) The demand curve shifts to the right d) The product becomes free

• Prices decrease for the product

• The supply curve shifts to the left

• The demand curve remains unchanged

• c) The demand curve shifts to the right

If consumers expect prices to rise in the near future, what is likely to happen? a) Demand will stay the same b) Demand will decrease c) Demand will increase now d) Consumers will wait longer to buy

• f) Consumers will buy less now

• e) Demand will increase in the long term

• g) Demand will fluctuate unpredictably

• c) Demand will increase now

What is the effect of a decrease in consumer income on the demand for normal goods? a) Demand increases b) Demand decreases c) Demand remains unchanged d) Demand becomes elastic

• Demand shifts to inferior goods

• Demand increases significantly

• b) Demand decreases

• Demand becomes perfectly inelastic

What is the relationship between price and quantity demanded known as? a) Demand curve b) Supply curve c) Law of demand d) Market equilibrium

• Consumer surplus

• Price elasticity

• Marginal cost

• c) Law of demand