Supply, Demand, & Price Unit Test (Modified) (C)

The law of demand states that as the price of a good increases

• Quantity demanded increases
• Quantity demanded decreases

Your satisfaction in eating the first slice of pizza is the greatest. Each additional piece is a little less satisfying. This illustrates the law of

• Diminishing marginal utility
• Increasing marginal returns

Demand depends on the willingness and ability of

• Producers to produce
• Consumers to purchase

What would you expect to happen to the DEMAND for premium ribeye steak (a normal good) if household incomes decline for the third straight year?

• A shift to left (decrease) in demand for ribeye steak
• A shift to right (increase) in demand for ribeye steak

Dog adoptions soared during the pandemic. Which graph shows what will happen to the demand curve for dog toys?

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Minimum wage increases by $1 an hour and more teenagers are buying movie tickets. Which demand shifter?

• Change in the market size
• Change in income

What will happen in the market for gym memberships if video shorts aimed at teenagers and the under-30 crowd show people working out and showing off muscles and fit bodies?

• Increase in demand due to number of buyers
• Increase in demand due to tastes and preferences

The price of milk skyrockets and cereal sales fall. Which demand shifter?

• Change in consumer tastes
• Change in complementary goods

If a recession leads to high unemployment and people purchase more "store brand" grocery items, are the grocery items a normal or an inferior good?

• Normal good
• Inferior good

What will happen in the market for coffee in the PRESENT if consumers expect the price of coffee to rise in the future due to political unrest in South America?

• The demand for coffee will increase.
• The demand for coffee will decrease.