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WorksheetsChapter 4 - Demand
Total questions: 41
Worksheet time: 43mins
Demand Curves
slope upward from left to right
slope downward from left to right
show a positive relationship
slope downward from right to left
Which of the following could increase demand for a good?
higher birthrate
increased immigration
higher prices in the future
all of the above
A shift of the demand curve represents
a movement on the demand curve
a change in the quantity demanded
a change in demand
all of the above
In economics, demand means
willingness and desire to buy a good
willingness and ability to buy a good
ability to buy a good
willingness to buy a good
If the number of buyers in the market increases, which of the following will happen?
The supply in the market will increase
The supply in the market will decrease
The demand in the market will increase
The demand in the market will decrease
What will happen in the car market if consumers expect higher prices in the near future?
The demand for cars will decrease
The demand for cars will increase
The supply of cars will drop
The demand for cars will not change
When goods are substitutes, which of the following occurs?
The demand for one good moves in the opposite direction as the price of the other good
The demand for one good does not affect the price of the other
The demand for one good moves in the same direction as the price of the other good
The supply for one good moves in the opposite direction as the price of the other good
With complementary goods, which of the following occurs?
The demand for one good moves in the same direction as the price of the other good
The demand for one good moves in the opposite direction as the price of the other good
The demand for one good does not affect the price of the other
The supply of one good moves in the opposite direction as the price of the other good
A normal good
has not been damaged
will be purchased, regardless of changes in income
will be in higher demand if a person's income increases
will be in higher demand if a person's income decreases
A change in quantity demanded can be caused by
income
preferences
price
price of a substitute
If a decrease in income increases the demand for a good, the good is
inferior
normal
a complement
a substitute
What is a demand schedule?
A graph that shows how much of a product a person is able &willing to buy
a table that shows how much of a product a person/market is willing to buy
a graph that shows how much of a product a market is willing to buy
What is a demand curve?
a table showing how much an individual is willing &able to buy
a table showing how much an individual is willing&able to buy
a graph showing how much of a product a person/market is willing &able to buy
How does the slope on an elastic curve look?
steep slope
shallow slope
vertical line
horizontal
Which of the following are elastic in demand?
Ice cream
Table salt
Gasoline
table salt and gasoline
Which of the following are inelastic in demand?
tomatoes
sports car
fur coat
Insulin and braces on teeth
A factory closes, laying off hundreds of workers, and consumer spending in the town falls. What factor is affecting demand?
consumer expectation
consumer taste
change in income
substitutes
The graph represents which concept of demand
Change in Price
Decrease in Demand
Change in Quantity Demand (Slide)
Change in Demand (Shift)
Which concept of demand does the graph represent?
Change in Price
Change in Demand (Shift)
Decrease in Demand
Change in Quantity Demand (Slide)
When consumers react to an increase in a good's price by consuming less of that good and more of other goods.
Cost Effect
Income Effect
Substitution Effect
Inflationary Effect
Your favorite snack has a sudden price increase of $2. You are forced to settle for a substitute cheaper snack. The demand for your favorite snack is
Inelastic
Elastic
Unitary Elastic
Ceteris Paribus
According to the Total Revenue Test for elastic demand, as prices go ____________, total revenue goes _____________.
Up; Up
Up; Down
Down; Down
If the price of gas goes up and total revenue goes up, what does that say about the elasticity of gas?
Gas is Elastic
Gas is Inelastic
Gas is Unitary Elastic
Thousands of people leave a small town due to a factory closing down. Sales at the local stores drop. What causes this change?
Prices or availability of substitutes
Prices or availability of complementary goods
Change in Preferences
Change in Population
A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in
Population
Price of Substitute Good
Price of Complementary Good
Consumer Preferences/Tastes
Goods for which demand goes down as income goes up are better known as
Inferior Goods
Normal Goods
Public Goods
Private Goods
When the price of hot dogs decreases and the demand for hot dog buns increases, this explains the demand of
Complementary goods
Capital Goods
Substitute Goods
Consumer Goods
What is the only factor that causes a change in quantity demanded (Slide) along a demand curve?
population
income
price
tastes and preferences
Identify which determinant of demand (Shifter) is involved: Kohl's Black Friday sales are approaching.
Population
Complementary goods
Consumer expectations
Consumer tastes or preferences
The price of coffee increases and people switch to drinking tea. The determinant of demand is
Income
Price of Related Goods (Complements)
Consumer Preferences/Tastes
Price of Related Goods (Substitutes)
Consider the market for cellular phones. Which of the following shifts the demand curve to the left?
studies showing using cellular phones can cause brain cancer
a decrease in the price of cellular phones
a decrease in the quantity demanded of cellular phones
an increase in the services provided by cellular phones, such as text messaging
When the price of a product increases, a consumer is able to buy less of it. Which effect does this describe?
Cost Effect
Inflationary Effect
Income Effect
Substitution Effect
