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WorksheetsEconomics Demand and Changes in Demand
Total questions: 141
Worksheet time: 1hrs 11mins
Name
Class
Date
1.
You need the textbook. Go to page 91. When we talk about the “______” for a product, we mean more than the desire to simply have or own the item.
a)
demand
b)
supply
c)
price
d)
quantity
e)
cost
2.
In order for demand to be counted in the marketplace, desire must be coupled with the ______ and willingness to pay for it.
a)
ability
b)
desire
c)
quantity
d)
supply
e)
price
3.
Only those people with demand—the desire, ______, and willingness to buy a product—can compete with others who have similar demands.
a)
ability
b)
satisfaction
c)
quantity
d)
price
e)
desire
4.
Demand, like many of the other topics discussed in Unit 2, is a ______ concept.
a)
microeconomic
b)
macroeconomic
c)
statistical
d)
behavioral
e)
financial
5.
Microeconomics is the part of economic theory that deals with ______ and decision making by individual units.
a)
behavior
b)
supply
c)
distribution
d)
global trends
e)
total income
6.
Microeconomics explains how prices are determined and how individual ______ are made.
a)
economic decisions
b)
consumer choices
c)
political decisions
d)
firm strategies
e)
purchasing decisions
7.
The desire, ability, and willingness to buy a product are all components of ______.
a)
demand
b)
supply
c)
supply chain
d)
total market demand
e)
economic equilibrium
8.
Microeconomic concepts help explain how ______ are determined in the market.
a)
prices
b)
stocks
c)
wages
d)
costs
e)
taxes
9.
Microeconomics focuses on decision making by ______ units, such as people and firms.
a)
individual
b)
global
c)
collective
d)
national
e)
social
10.
The concepts of microeconomics help us understand how ______ decisions are made.
a)
economic
b)
political
c)
environmental
d)
social
e)
collective
11.
In a market economy, people and firms act in their own best ______ to answer the basic WHAT, HOW, and FOR WHOM questions.
a)
interests
b)
needs
c)
desires
d)
wants
e)
goals
12.
Demand is ______ to the process of answering the basic economic questions.
a)
central
b)
unrelated
c)
secondary
d)
irrelevant
e)
peripheral
13.
Understanding the concept of demand is essential if we are to understand how the ______ works.
a)
economy
b)
market
c)
price system
d)
consumer behavior
e)
supply chain
14.
The concept of demand involves two variables: the price and ______ of a specific product.
a)
quantity
b)
supply
c)
availability
d)
variety
e)
demand
15.
We might want to know how many people would want to see a movie if the price was ______.
a)
5
b)
10
c)
2
d)
20
e)
50
16.
The answers to how many people would want to see a movie would depend on a number of things, including the ______ of people living in the area.
a)
number
b)
size
c)
variety
d)
age
e)
location
17.
The popularity of the movie is one of the ______ that can affect how many people would want to see it.
a)
factors
b)
reasons
c)
aspects
d)
ideas
e)
opinions
18.
In the end, everything is measured in terms of ______ and quantities.
a)
prices
b)
quality
c)
availability
d)
demand
e)
supply
19.
We want to know how many would want to see a movie if the price was $5 or ______.
a)
10
b)
20
c)
15
d)
30
e)
50
20.
The number and types of ______ playing at the same time could also affect how many people want to see a movie.
a)
movies
b)
ads
c)
concerts
d)
restaurants
e)
shows
21.
To see how an economist would analyze demand, look at ______ in Figure 4.1.
a)
Panel A
b)
Panel B
c)
Figure 5.2
d)
Graph 4.1
e)
Chart A
22.
Panel A shows the amount of a product that a consumer, ______, would be willing and able to purchase.
a)
Mike
b)
John
c)
Sarah
d)
Jessica
e)
Emily
23.
The prices that Mike is willing to pay range from ______.
a)
$5 to $30
b)
$10 to $50
c)
$1 to $20
d)
$2 to $25
e)
$15 to $35
24.
The information in Panel A is known as a ______.
a)
demand schedule
b)
price list
c)
supply curve
d)
product chart
e)
quantity graph
25.
The demand schedule shows the various ______ demanded of a particular product at all prices.
a)
quantities
b)
values
c)
products
d)
items
e)
sales
26.
Mike would not buy any CDs at a price of ______.
a)
$25 or $30
b)
10
c)
15
d)
5
e)
20
27.
Mike would buy ______ CD if the price fell to $20.
a)
one
b)
three
c)
two
d)
four
e)
five
28.
Mike would buy ______ CDs if the price was $15.
a)
three
b)
one
c)
five
d)
two
e)
four
29.
Mike is generally willing to buy more units of a product as the price gets ______.
a)
lower
b)
higher
c)
the same
d)
adjusted
e)
decreased
30.
Mike’s demand for CDs shows the inverse relationship between ______ and quantity.
a)
price
b)
demand
c)
availability
d)
popularity
e)
cost
31.
The demand schedule in Panel A of Figure 4.1 can also be shown graphically as the ______ line in Panel B.
a)
downward-sloping
b)
upward-sloping
c)
straight
d)
diagonal
e)
horizontal
32.
To form the demand curve, we need to transfer each of the price-______ observations from the demand schedule to the graph.
a)
quantity
b)
value
c)
price
d)
range
e)
units
33.
Economists call the graph showing the quantity demanded at each price the ______.
a)
demand curve
b)
price curve
c)
supply curve
d)
quantity graph
e)
price schedule
34.
Point a in Panel B shows that Mike purchased ______ CDs at a price of $15 each.
a)
three
b)
two
c)
four
d)
five
e)
six
35.
Point b in Panel B shows that Mike will buy ______ CDs at a price of $10.
a)
five
b)
three
c)
two
d)
six
e)
seven
36.
The demand schedule and the demand curve are similar in that they both show the same ______.
a)
information
b)
trends
c)
values
d)
data
e)
results
37.
The demand schedule shows the data in the form of a ______.
a)
table
b)
graph
c)
chart
d)
line
e)
curve
38.
The demand curve shows the data in the form of a ______.
a)
graph
b)
table
c)
chart
d)
curve
e)
schedule
39.
The demand schedule and the demand curve both show the same information, but one is in the form of a ______ and the other is a graph.
a)
table
b)
chart
c)
list
d)
diagram
e)
range
40.
The process of forming the demand curve involves ______ the points on a graph.
a)
connecting
b)
separating
c)
plotting
d)
dividing
e)
shading
41.
The prices and quantities in Figure 4.1 point out a feature of demand: for practically every good or service that we might buy, higher prices are associated with ______.
a)
smaller amounts demanded
b)
larger amounts demanded
c)
the same amount demanded
d)
equal quantities demanded
e)
no change in amounts demanded
42.
Conversely, lower prices are associated with ______ amounts demanded.
a)
larger
b)
smaller
c)
fewer
d)
no change
e)
more
43.
This is known as the ______ of Demand.
a)
Law
b)
Principle
c)
Rule
d)
Effect
e)
Concept
44.
The Law of Demand states that the quantity demanded varies ______ with its price.
a)
inversely
b)
directly
c)
proportionally
d)
equally
e)
randomly
45.
When the price of something goes up, the quantity demanded goes ______.
a)
down
b)
up
c)
the same
d)
to the right
e)
to the left
46.
Likewise, when the price goes down, quantity demanded goes ______.
a)
up
b)
down
c)
the same
d)
to the left
e)
to the right
47.
Expressing something as a “law” may seem like a ______ statement for a social science like economics to make.
a)
strong
b)
weak
c)
neutral
d)
broad
e)
vague
48.
There are two reasons why economists prefer to do so. First, the ______ relationship between price and quantity demanded is something economists find in study after study.
a)
inverse
b)
positive
c)
irrelevant
d)
equal
e)
proportionate
49.
People almost always state that they would buy more of an item if its price goes ______.
a)
down
b)
up
c)
the same
d)
higher
e)
lower
50.
People would buy ______ if the price goes up.
a)
less
b)
more
c)
the same
d)
fewer
e)
lower
51.
Second, common sense and simple observation are ______ with the Law of Demand.
a)
consistent
b)
inconsistent
c)
irrelevant
d)
unrelated
e)
disproven
52.
This is how people behave in everyday life—they normally buy more of a product at ______ prices than they do at higher ones.
a)
lower
b)
higher
c)
equal
d)
decreasing
e)
fixed
53.
All we have to do is to note the increased ______ at the mall whenever there is a sale.
a)
purchases
b)
sales
c)
visits
d)
prices
e)
items
54.
This is why economics is a social science: because it is the study of the way we behave when ______ around us change.
a)
things
b)
people
c)
prices
d)
goods
e)
conditions
55.
So far we have discussed a particular ______ demand for a product.
a)
individual
b)
market
c)
general
d)
collective
e)
group
56.
Sometimes, however, we are more concerned with the ______ demand curve.
a)
market
b)
individual
c)
general
d)
group
e)
specific
57.
The market demand curve shows the quantities demanded by ______ who is interested in purchasing the product.
a)
everyone
b)
only a few
c)
a select few
d)
people
e)
certain groups
58.
Figure 4.2 shows the market demand curve D for Mike and his friend ______.
a)
Julia
b)
Sarah
c)
Kate
d)
Emma
e)
Anna
59.
To get the market demand curve, we add together the number of CDs that Mike and Julia would purchase at ______ price.
a)
every possible
b)
some specific
c)
random
d)
fixed
e)
equal
60.
Then, we simply plot the prices and ______ on a separate graph.
a)
quantities
b)
colors
c)
labels
d)
dates
e)
regions
61.
To illustrate, point a in Figure 4.2 represents the three CDs that Mike would purchase at $15, plus the three that ______ would buy at the same price.
a)
Julia
b)
Mike
c)
Sarah
d)
Kate
e)
Emma
62.
Likewise, point b represents the quantity of CDs that both would purchase at ______ price.
a)
10
b)
15
c)
20
d)
30
e)
5
63.
The market demand curve in Figure 4.2 is very similar to the ______ demand curve in Figure 4.1.
a)
individual
b)
market
c)
collective
d)
personal
e)
total
64.
Both curves are ______ sloping.
a)
downward
b)
upward
c)
flat
d)
linear
e)
horizontal
65.
As you may recall from Chapter 1, economists use the term ______ to describe the amount of usefulness or satisfaction that someone gets from the use of a product.
a)
utility
b)
demand
c)
marginal utility
d)
price
e)
value
66.
Marginal utility is the extra usefulness or additional ______ a person gets from acquiring or using one more unit of a product.
a)
satisfaction
b)
usefulness
c)
benefit
d)
price
e)
value
67.
The reason we buy something in the first place is because we feel that the product is ______ and will give satisfaction.
a)
useful
b)
valuable
c)
expensive
d)
necessary
e)
enjoyable
68.
However, as we use more and more of a product, we encounter ______ marginal utility, the principle which states that the extra satisfaction we get from using additional quantities of the product begins to decline.
a)
diminishing
b)
increasing
c)
constant
d)
neutral
e)
declining
69.
Because of our diminishing satisfaction, we usually are not willing to pay as ______ for the second, third, fourth, and so on, as we did the first unit.
a)
much
b)
little
c)
many
d)
often
e)
high
70.
This is why our demand curve is ______-sloping, and this is why Mike and Julia won’t pay as much for the second CD as they did for the first.
a)
downward
b)
upward
c)
horizontal
d)
straight
e)
flat
71.
Diminishing satisfaction happens to all of us at ______ time.
a)
some
b)
no
c)
few
d)
each
e)
any
72.
For example, when you buy a drink because you are thirsty, you get the most ______ from the first purchase.
a)
satisfaction
b)
thirst
c)
enjoyment
d)
value
e)
benefit
73.
Since you are now less thirsty, you get ______ satisfaction from the second purchase.
a)
less
b)
more
c)
the same
d)
better
e)
less enjoyment
74.
You are not willing to pay as much for the second and third ______.
a)
purchases
b)
drinks
c)
units
d)
CDs
e)
items
75.
Go to page 97. Why would McDonald’s go to the trouble and expense of redesigning its restaurants? The company realizes that __________ is changing.
a)
consumer demand
b)
the economy is changing
c)
technology is changing
d)
food prices are changing
e)
the workforce is changing
76.
This means the company has to change too, or it risks losing business to __________ that better meet customer demand.
a)
competitors
b)
suppliers
c)
investors
d)
employees
e)
government
77.
Such changes in demand have an effect on both the __________ and the demand curve.
a)
demand schedule
b)
price level
c)
quantity supplied
d)
quantity demanded
e)
total revenue
78.
When it comes to demand, there are __________ types of changes.
a)
two
b)
three
c)
four
d)
five
e)
six
79.
When the price of a product changes while all other factors remain the same, we have a change in the __________ demanded.
a)
quantity
b)
total demand
c)
quantity supplied
d)
demand curve
e)
supply schedule
80.
Sometimes other factors change while the price remains the same—similar to the change in __________ in our news story.
a)
consumer taste
b)
government policy
c)
product quality
d)
income levels
e)
advertising trends
81.
When this happens, we see a __________ in demand.
a)
change
b)
shift
c)
increase
d)
decrease
e)
fluctuation
82.
Look at Figure 4.3 to see what happens when only the __________ changes and everything else remains constant.
a)
price
b)
supply
c)
demand
d)
quantity
e)
income
83.
Point a on the demand curve shows that __________ CDs are demanded at a price of $15.
a)
six
b)
eight
c)
ten
d)
twelve
e)
five
84.
When the price falls to $10, __________ CDs are demanded.
a)
10
b)
8
c)
6
d)
12
e)
15
85.
This movement from point a to point b is a change in __________ demanded.
a)
quantity
b)
price level
c)
supply
d)
total demand
e)
consumer demand
86.
When the price goes up, __________ CDs are demanded.
a)
fewer
b)
more
c)
the same amount
d)
less than before
e)
more than before
87.
When the price goes down, __________ are demanded.
a)
more
b)
fewer
c)
the same amount
d)
none
e)
the price of CDs
88.
The income and __________ effects help us understand this principle.
a)
substitution
b)
supply
c)
demand
d)
price
e)
production
89.
When the price of a product drops, consumers pay less and have some __________ income to spend.
a)
extra
b)
less
c)
no
d)
the same
e)
equal
90.
For example, consumers spent $90 to buy six CDs when the price was $15 per CD. If the price drops to $10, they would spend only __________ on the same quantity.
a)
60
b)
90
c)
45
d)
100
e)
75
91.
They may even spend some of this extra income on __________.
a)
more CDs
b)
more clothes
c)
more food
d)
other products
e)
vacation
92.
A lower price also means that CDs will be relatively less expensive than other __________ such as concerts and movies.
a)
goods and services
b)
products
c)
items
d)
events
e)
activities
93.
As a result, consumers will have a tendency to replace a more costly item—say, going to a __________—with a less costly one—more CDs.
a)
concert
b)
movie
c)
restaurant
d)
game
e)
vacation
94.
The __________ effect is the change in quantity demanded because of the change in the relative price of the product.
a)
substitution
b)
income
c)
demand
d)
supply
e)
price
95.
Together, the income and __________ effects explain why consumers increase their consumption of CDs from 6 to 10 when the price drops from $15 to $10.
a)
substitution
b)
demand
c)
supply
d)
price
e)
consumption
96.
Whenever a price change causes a change in __________ demanded, the change appears graphically as a movement along the demand curve.
a)
quantity
b)
income
c)
supply
d)
product
e)
demand curve
97.
The change in quantity demanded can be either an __________ or a decrease.
a)
increase
b)
improvement
c)
increase in demand
d)
addition
e)
shift
98.
But in either case, the __________ curve itself does not shift.
a)
demand
b)
price
c)
supply
d)
quantity
e)
total demand
99.
The substitution effect explains why consumers increase their consumption of CDs when the price drops from $15 to $10 by replacing a more costly __________.
a)
item
b)
product
c)
good
d)
service
e)
concert
100.
The substitution effect is related to the change in the __________ price of the product.
a)
relative
b)
absolute
c)
total
d)
real
e)
perceived
101.
A lower price makes CDs __________ than other goods and services, leading to more consumption.
a)
less expensive
b)
more expensive
c)
less desirable
d)
more desirable
e)
more costly
102.
Sometimes other factors change while the __________ remains the same.
a)
price
b)
demand
c)
quantity
d)
schedule
e)
income
103.
When this happens, people may decide to buy __________ amounts of the product at the same prices.
a)
different
b)
more
c)
fewer
d)
similar
e)
the same
104.
This is known as a change in __________.
a)
demand
b)
quantity
c)
price
d)
supply
e)
income
105.
As a result, the entire demand __________ shifts—to the right to show an increase in demand, or to the left to show a decrease in demand.
a)
curve
b)
line
c)
quantity
d)
schedule
e)
schedule
106.
A change in demand results in an entirely new __________ curve.
a)
demand
b)
quantity
c)
price
d)
supply
e)
income
107.
A change in quantity demanded is a __________ along the original demand curve.
a)
movement
b)
shift
c)
change
d)
factor
e)
point
108.
A change in demand is illustrated in the __________ and graph in Figure 4.4.
a)
schedule
b)
price
c)
quantity
d)
income
e)
movement
109.
In Panel A, people are willing to buy __________ amounts at each and every price.
a)
different
b)
the same
c)
fewer
d)
more
e)
higher
110.
At a price of $15, for example, consumers are now willing to buy __________ CDs instead of 6.
a)
10
b)
8
c)
12
d)
15
e)
5
111.
When demand changes, a new schedule or curve must be __________ to reflect the new quantities demanded at all possible prices.
a)
constructed
b)
deleted
c)
calculated
d)
shifted
e)
drawn
112.
Consumers sometimes change their __________ about the products they buy.
a)
minds
b)
prices
c)
preferences
d)
opinions
e)
interests
113.
__________, fashion trends, and even changes in the season can affect consumer tastes.
a)
Advertising
b)
Quantity
c)
Cost
d)
Market trends
e)
Government policy
114.
When a product is successfully advertised, its __________ increases and people tend to buy more of it.
a)
popularity
b)
demand
c)
price
d)
availability
e)
quality
115.
As a result, the __________ curve shifts to the right.
a)
demand
b)
supply
c)
price
d)
income
e)
quantity
116.
On the other hand, people will buy __________ of a product if they get tired of it.
a)
less
b)
more
c)
the same amount
d)
different amounts
e)
fewer
117.
When fewer people want the product at all possible prices, the demand curve shifts to the __________.
a)
left
b)
right
c)
up
d)
down
e)
center
118.
The development of new products can have a __________ and relatively sudden impact on consumer preferences.
a)
dramatic
b)
slow
c)
gradual
d)
minimal
e)
constant
119.
When music CDs were first introduced on the market, they reduced the demand for __________ players and tapes.
a)
cassette
b)
vinyl
c)
radio
d)
MP3
e)
CD
120.
When the iPod and similar devices arrived, the demand for __________ and CD players decreased.
a)
CDs
b)
tapes
c)
records
d)
radios
e)
MP3s
121.
Sometimes the change in consumer tastes and preferences is __________ rapid, and sometimes the change occurs more slowly.
a)
relatively
b)
completely
c)
minimally
d)
gradually
e)
abruptly
122.
Consumer concerns about health have __________ increased the demand for healthful foods.
a)
slowly
b)
quickly
c)
suddenly
d)
gradually
e)
abruptly
123.
A change in the price of __________ products can cause a change in demand.
a)
related
b)
similar
c)
different
d)
complementary
e)
unrelated
124.
Some products are known as __________ because they can be used in place of other products.
a)
substitutes
b)
complements
c)
competitors
d)
alternatives
e)
accessories
125.
If people treat butter and margarine as substitutes, a rise in the price of __________ will cause an increase in the demand for margarine.
a)
butter
b)
margarine
c)
cheese
d)
milk
e)
oil
126.
Likewise, a rise in the price of __________ would cause the demand for butter to increase.
a)
margarine
b)
butter
c)
cheese
d)
milk
e)
oil
127.
In general, the demand for a product tends to increase if the price of its __________ goes up.
a)
substitute
b)
complement
c)
price
d)
competitor
e)
accessory
128.
The demand for a product tends to __________ if the price of its substitute goes down.
a)
decrease
b)
increase
c)
stay the same
d)
remain stable
e)
fluctuate
129.
Other related goods are known as __________, because the use of one increases the use of the other.
a)
complements
b)
substitutes
c)
competitors
d)
accessories
e)
alternatives
130.
Personal computers and software are two __________ goods.
a)
complementary
b)
substitute
c)
competitive
d)
similar
e)
rival
131.
When the price of computers decreases, consumers buy more computers and __________.
a)
software
b)
hardware
c)
accessories
d)
goods
e)
peripherals
132.
If the price of computers spirals upward, consumers would buy __________ computers and less software.
a)
fewer
b)
more
c)
the same
d)
a lot fewer
e)
significantly fewer
133.
An increase in the price of one good usually leads to a __________ in the demand for its complement.
a)
decrease
b)
increase
c)
shift
d)
change
e)
rise
134.
The way people think about the __________ can affect demand.
a)
future
b)
present
c)
past
d)
weather
e)
market
135.
For example, if a company announces a technological breakthrough in television picture quality, some consumers might __________ buying a TV today.
a)
hold off
b)
rush into
c)
avoid
d)
increase
e)
delay
136.
Purchasing less at every price would cause demand to __________, illustrated by a shift of the demand curve to the left.
a)
decline
b)
increase
c)
remain the same
d)
stabilize
e)
decrease
137.
Expectations can have the __________ effect on market demand.
a)
opposite
b)
same
c)
positive
d)
minimal
e)
unpredictable
138.
For example, if the weather service forecasts a bad year for crops, people might __________ on some foods before these items actually become scarce.
a)
stock up
b)
avoid buying
c)
stop purchasing
d)
delay buying
e)
forget about
139.
The willingness to buy more because of expected future shortages would cause demand to __________.
a)
increase
b)
decrease
c)
stay the same
d)
stabilize
e)
fluctuate
140.
A change in income, tastes, and prices of related products affects __________ demand schedules and curves.
a)
individual
b)
market
c)
aggregate
d)
total
e)
consumer
141.
The market demand curve can also change if there is a change in the number of __________.
a)
consumers
b)
competitors
c)
suppliers
d)
products
e)
sellers
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