Tuesday

What does the law of demand say?

• As price increases, supply increases

• As income rises, demand drops

• Higher prices create higher profits

• As price rises, demand falls

What causes a movement along the demand curve?

• Income changes

• Consumer preferences

• Celebrity trends

• A change in price

What causes the demand curve to shift?

• A change in price only

• Changing profit margins

• Price of supply

• External factors like income or trends

What is an example of elastic demand?

• Gas

• Medicine

• Electricity

• Designer shoes

What is an example of inelastic demand?

• Video games

• Shoes

• Movie tickets

• Insulin

If the price of Dutch Bros goes up and people switch to Starbucks, that’s called:

• A demand shift

• Income effect

• Price gouging

• Substitution effect

If more people want a product and supply stays the same, price will:

• Stay the same

• Decrease

• Flatten

• Increase

What is equilibrium?

• Price always falling

• Price always rising

• Government sets the price

• Where supply equals demand

A change in demand due to popularity is a:

• Law of supply

• Market reaction

• Price cap

• Demand shift

What happens if price is set too high above equilibrium?

• Shortage

• Elasticity

• Income change

• Surplus