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Shifting Demand

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

What are factors (besides price) that determine demand

a)

income, prices of related goods, demand curve

b)

consumer taste, market size, decisions by businesses

c)

demand curve, market size, income

d)

market size, income, consumer taste/style

2.

As income rises...

a)

demand decreases

b)

demand increases

c)

demand is unchanged

d)

demand fluctuates

3.

Which of these is NOT a factor that affects market size?

a)

consumer expectations

b)

income

c)

diminishing marginal utility

d)

government policy

4.

If the price of milk is increasing, you may go buy almond milk instead. What is this?

a)

diminishing marginal utility

b)

income effect

c)

substitute goods

d)

government intervention

5.

Paint is on sale, so you decide to paint the house. You also have to buy paint brushes, drop cloths and buckets. What are these?

a)

substitute goods

b)

increased market size

c)

income effect

d)

complimentary goods

6.

A new band gets to perform on the Jimmy Kimmel show, so people become interested and download the band onto their Spotify playlist. What has happened?

a)

market size decreased

b)

market size increased

c)

positive consumer expectations for the future

d)

income effect

7.

Demand curve shows level of consumer demand for a product. If there is an INCREASE in demand due to one of the demand shifters, what happens to the curve?

a)

shift right

b)

shift left

c)

no change, it doesn't even matter

d)

changes direction

8.

When prices rise for a particular product, consumers will purchase lower-priced similar items..

a)

income effect

b)

substitute effect

c)

diminishing marginal utility

d)

law of demand

9.

The basic problem of economics is ___.. we just don't have the resources to take care of ALL of our wants/needs!

a)

opportunity cost

b)

diminishing marginal utility

c)

purchasing power

d)

scarcity

10.

A product may be amazing, but unless people can actually afford it, it's not really in deman.

a)

True

b)

False

11.

As prices for a product decrease, demand for a product should increase..

a)

diminishing marginal utility

b)

elasticity

c)

income effect

d)

law of demand

12.

The more of a product that you consume, the less satisfaction the consumer enjoys..

a)

income effect

b)

diminishing marginal utility

c)

demand elasticity

d)

purchasing power

13.

The more money that a person makes, the more they are willing to spend..

a)

diminishing marginal utility

b)

substitute effect

c)

total revenue

d)

income effect

14.

Which of the following factors affect a product's demand elasticity?

a)

if the product is a necessity

b)

if there are available substitutes

c)

if an influencer features it on TikTok

d)

people live near where the product is sold

15.

If the demand curve shows the demand for plastic straws, and CA then outlaws straws, what happens to the demand curve

a)

Nothing

b)

shift to the right

c)

shift to the left

d)

it will then slope upward instead

16.

The demand for a product becomes ELASTIC when a price change causes

a)

an increase in demand

b)

a decrease in demand

c)

an increase in supply

d)

a decrease in supply

17.

The demand curve shows demand for coffee. If a scientific study shows that drinking coffee will lead to better health, what happens to the curve?

a)

shift right

b)

shift left

c)

nothing

d)

it will become vertical

18.

Which of these are factors that would cause a SHIFT in the demand for a product?

a)

gov't decisions

b)

change in taste/preference/ style

c)

surplus of supply

d)

change in market size (more people are aware of the product)