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WorksheetsDemand
Total questions: 65
Worksheet time: 50mins
What does the law of demand say
consumers will buy less of something when the price goes down
consumers will buy more of something when price increases.
consumers will buy more of something when prices decrease.
None of the above.
What is the difference between a demand schedule and a market demand schedule?
A market demand schedule shows prices at a given moment
A market demand schedule shows consumer behavior for an entire market
A demand schedule is for one person
An individual demand schedule gives a producer all the information they need
True
False
The law of diminishing marginal utility states that the marginal benefit each unit of a good or service tends to increase each time it's used
True
False
What is the income effect?
The change in amount of product producers will make based on average income of consumers
The change in amount of product consumers will purchase when purchasing powers of their income changes
The change in income due to changes in producer behavior
The change in income when prices of prices of products change
What is the substitution effect?
Producers fight to out price their competitors with substitute products
Consumers buy a substitute product because it is new/exciting
Consumers generally reject substitute products because they don't want change
Consumers react to a change in price of a good by buying a substitute product
Which one of these was NOT a factor that affects demand?
Income
Consumer Tastes
Occupation
Market Size
If all things are equal, consumers will demand more of a product as its price decreases
True
False
Select all that apply. Demand can change in two ways
Change in "Quantity Demanded"
Change in "Price"
Change in "Demand"
Change in "Demand"
Shift of the entire demand curve either "left" or "right"
Price change, from one "quantity" to another
More items will be demanded at every price
Change in "Quantity Demanded"
Supply change
Price change, from one "quantity" to another
Change along the demand curve
Select all that apply. 3 Factors that will increase demand.
Consumers have less money
Product is fad (popular)
Price of a substitute good increases
Price of a complementary good decreases
Select all that apply. 3 Factors that will decrease demand.
Consumers have less money
Consumers expect future sales
Consumers leave the market
Price of a complementary good decreases
Select all that apply. 3 Factors that will decrease demand.
Price of a substitute good decreases
Price of a substitute good increases
Product goes out of style
Price of a complementary good increases
movement along the demand curve showing that a different quantity is purchased in response to a change in price
Change in quantity demanded
Change in demand
Change in market equilibrium
Change in supply
We are looking at a shift of the demand curve, either to the left or the the right. (PINET).
Change in quantity demanded
Change in demand
Change in market equilibrium
Change in supply
Which one is not a "change of demand":
Tastes and Prefereces
Prices of related goods
Productivity/Technology
Numbers of Consumers
Rachel just got a raise! she can now buy more pizza on the weekend.
Price of Related Goods
Expectations for the Future
Tastes and Prefereces
Consumer's Income
Low rise jeans are out of style, causing the demand for those jeans to decrease.
Prices of Related goods
Income Effect
Tastes and Prefereces
Expectations for the Future.
A Shortage of grain is expected to hit next month. Consumers purchase more of the good now that is available.
Tastes and Prefereces
Expectations for the Future
Price of Related Goods
Numbers of Consumers
Tostitos increases their price, Doritos decreases their price. What would happen to the demand of Tostitos?
Decrease
Increase
A shortage of toilet paper is expected to happen next year. What would happen to the demand of toilet paper now?
Increase
Decrease
The number of consumers in the "donuts" market decreases due to spring fever (wanting to lose weight). What would happen to the demand of donuts?
Increase
Decrease
Due to the quarantine, more people were at home watching tv. What happened to the demand of Netflix?
Decreased
Increased
Consider the market for SUVs (large gasoline consuming cars). If the price of gasoline increases then the Demand for these vehicles will
increase
decrease
not be affected
What kind of relationship exist between price and quantity demanded?
Inverse
Positive
Propotionate
None of these
With an increase in the price of petrol, demand curve of cars
Shifts rightward
Moves upward
Shifts leftward
Moves downward
A movement along the demand curve is due to
Increase in demand
Decrease in demand
Change in price
Change in income
If the price of goods x rises and the demand for goods y decreases then the two goods are called
Substitute goods
Complementary goods
Normal goods
Inferior goods
Cell phone and cell services are
Complementary goods
Substitute goods
Unrelated good
None of these
When classifying a good or service as having demand, that means that consumers have both the desire for the good or service and ____________.
the ability to pay for it.
it is a need, not just a want.
there is enough supply of the product for them to demand.
there is no substitute available.
Which of the following would classify as substitutes?
pet, vet bills
bread, butter
Dominos, Pizza Hut
phone, charger
Which of the following would classify as complements?
Coke, Pepsi
tennis racket, tennis balls
coffee, tea
Iphone, Samsung Galaxy
Consumers serve their own self interest by purchasing the best products at the _____ prices possible.
highest
lowest
fairest
When an increase in demand occurs, which direction will a demand curve shift?
up
down
left
right
When a decrease in demand occurs, which way will a demand curve shift?
up
down
left
right
Demand will change due to market size. What is market size?
a change in the population of a region
a change in the number of consumers that are demanding the product
a change in the number of people producing the product
What is relationship between demand and market size?
direct - Market size goes up, Demand goes up
indirect - Market size goes down, Demand goes down
unchanged - there is no change in demand when market size increases or decreases
The law of demand shows the relationship between
consumers' income and demand.
population and demand.
demand and supply.
price and quantity demanded.
A movement along a demand curve can be influenced by
tastes.
population.
the product's price.
consumers' income.
Which is not the example of complementary goods?
Cereal and Milk
DVD and a DVD player
Petrol and Car
Printer and Pen
Which graph shows an INCREASE in DEMAND?
1
2
3
4
Which graph shows an DECREASE in DEMAND?
1
2
3
4
Which graph shows an DECREASE in QUANTITY DEMANDED?
1
2
3
4
Which graph shows an INCREASE in QUANTITY DEMANDED?
1
2
3
4
What would be the correct way to explain the changes on graph 3
There has been a movement down the demand curve
There has been a movement up the demand curve
There has been a shift of the demand curve to the right from D to D1
There has been a shift of the demand curve to the left from D to D1
An increase in Demand is located by moving from point ________ to point_________
Moving from A to B
Moving from A to C
Moving from C to A
Moving from B to A
An increase in quantity Demanded is located by moving from point ________ to point_________
Moving from A to B
Moving from A to C
Moving from C to A
Moving from B to A
An decrease in quantity Demanded is located by moving from point ________ to point_________
Moving from A to B
Moving from A to C
Moving from C to A
Moving from B to A
An decrease in Demand is located by moving from point ________ to point_________
Moving from A to B
Moving from A to C
Moving from C to A
Moving from B to A
