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WorksheetsAGR113 - DEMAND
Total questions: 30
Worksheet time: 32mins
If the demand for a good increases when people's incomes increase,
the good is an inferior good
the law of demand is violated
the good's demand curve shifts to the left
the good is a normal good
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
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
The graph represents which concept of demand
Change in Price
Decrease in Demand
Change in Quantity Demand (Slide)
Change in Demand (Shift)
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)
Identify which determinant of demand (Shifter) is involved: Kohl's Black Friday sales are approaching.
Population
Complementary goods
Future price expectations
Consumer tastes or preferences
What is the only factor that causes a change in quantity demanded (Slide) along a demand curve?
population
income
price
tastes and preferences
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
Goods for which demand goes down as income goes up are better known as
Inferior Goods
Normal Goods
Public Goods
Private Goods
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
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
The law of demand states that
price and quantity demanded are inversely related
the larger the number of buyers in a market, the lower will be product price
price and quantity demanded are directly related
consumers will buy more of a product at high prices than at low prices
Which concept of demand does the graph represent?
Change in Price
Change in Demand (Shift)
Decrease in Demand
Change in Quantity Demanded (Slide)
constant
The quantity demanded of a good or service changes at all price levels best describes the concept of
change in quantity demanded
elasticity
change in demand
demand curve
Elasticity refers to
how producers of goods and services react to price changes
how consumers of goods and services react to price changes
how far a supply of scarce goods can be stretched
how often the price of a good or service changes when quantity demanded changes
Which of these demonstrates elastic demand?
a sharp increase in the price of milk causes a large drop in the quantity demanded for milk
the price of homes steadily increase but the quantity demanded for homes does not change
car dealerships cut prices to clear out previous year models and consumers rush to dealerships to take advantage of the sales
gas prices increase in the summer as more people want to go on road trips but the increases do not deter people from buying less gas
Which of these demonstrates inelastic demand? (multiple answers)
a cold snap destroys an apple crop causing prices to jump, however, people still buy apples and quantity demanded does not change
Super Bowl tickets hit record high prices but are still sold out in a matter of minutes and starting going for even higher prices on resale sites
concert tickets are not selling well, so the venue drops prices by 80%; the tickets sell out shortly thereafter
a restaurant starts charging a $10 delivery fee, delivery orders drop by 50% in the first month
Which of these shows a decrease in the quantity demanded?
Which of these demonstrates inelastic demand?
Which of these shows an increase in the quantity demanded?
