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Worksheets4.2 Factors Affecting Demand-Fill In
Total questions: 164
Worksheet time: 1hrs 22mins
Name
Class
Date
1.
The following questions are all fill-in-the-blank based on the sentences in the textbook. To start go to page 97. Why would McDonald’s go to the trouble and expense of ________________ its restaurants?
a)
redesigning
b)
renovating
c)
relocating
d)
expanding
e)
downsizing
2.
The ________________ realizes that consumer demand is changing.
a)
company
b)
management
c)
organization
d)
board
e)
owner
3.
This means the company has to change too, or it risks ________________ business to competitors that better meet customer demand.
a)
losing
b)
declining
c)
yielding
d)
increasing
e)
diverting
4.
Such ________________ in demand have an effect on both the demand schedule and the demand curve.
a)
changes
b)
shifts
c)
fluctuations
d)
movements
e)
variations
5.
When it comes to demand, there are two ________________ of changes.
a)
types
b)
forms
c)
categories
d)
varieties
e)
kinds
6.
When the ________________ of a product changes while all other factors remain the same, we have a change in the quantity demanded.
a)
price
b)
quality
c)
availability
d)
brand
e)
cost
7.
Sometimes other factors change while the price remains the same—similar to the change in ________________ taste in our news story.
a)
consumer
b)
producer
c)
government
d)
market
e)
competitor
8.
When this happens, we see a ________________ in demand.
a)
change
b)
shift
c)
increase
d)
decrease
e)
movement
9.
Look at Figure 4.3 to see what happens when only the price changes and everything else ________________.
a)
remains constant
b)
stays the same
c)
is identical
d)
is fixed
e)
is variable
10.
Point a on the ________________ shows that six CDs are demanded at a price of $15.
a)
demand curve
b)
supply curve
c)
demand schedule
d)
equilibrium point
e)
market line
11.
When the price falls to $10, 10 CDs ________________.
a)
are demanded
b)
are purchased
c)
will be bought
d)
are consumed
e)
are sold
12.
This ________________ from point a to point b is a change in quantity demanded—a change that is graphically represented as a movement along the demand curve.
a)
movement
b)
shift
c)
difference
d)
jump
e)
transition
13.
When the price goes up, fewer ________________ are demanded.
a)
CDs
b)
products
c)
items
d)
goods
e)
units
14.
When the ________________ goes down, more are demanded.
a)
price
b)
demand
c)
supply
d)
cost
e)
income
15.
As we will see, the income and substitution effects also help us understand this ________________.
a)
principle
b)
concept
c)
rule
d)
law
e)
theory
16.
When the price of a product drops, consumers pay less and, as a result, have some ________________ to spend.
a)
extra income
b)
additional funds
c)
disposable cash
d)
residual money
e)
savings
17.
For example, we can see from ________________ that consumers spent $90 to buy six CDs when the price was $15 per CD.
a)
Figure 4.3
b)
Figure 4.1
c)
Figure 4.2
d)
Panel A
e)
the graph
18.
If the price drops to $10, they would spend only $60 on the same quantity, leaving them $30 “richer” because of the ________________.
a)
drop in price
b)
price decrease
c)
discount
d)
sale
e)
lower cost
19.
They may even spend some of this ________________ on more CDs.
a)
extra income
b)
additional money
c)
savings
d)
profits
e)
surplus
20.
As a result, part of the increase from 6 to 10 units purchased, shown as the movement from point a to point b on the demand curve, is due to ________________ feeling richer.
a)
consumers
b)
people
c)
buyers
d)
customers
e)
purchasers
21.
If the price had gone up, consumers would have ________________ and would have bought fewer CDs.
a)
felt a bit poorer
b)
felt less rich
c)
had less income
d)
had less money
e)
felt disadvantaged
22.
This illustrates the ________________, the change in quantity demanded because of a change in price that alters consumers’ real income.
a)
income effect
b)
substitution effect
c)
price effect
d)
wealth effect
e)
real income effect
23.
A lower price also means that ________________ will be relatively less expensive than other goods and services such as concerts and movies.
a)
CDs
b)
goods
c)
products
d)
items
e)
music
24.
As a result, consumers will have a tendency to replace a more costly item—say, going to a concert—with a ________________—more CDs.
a)
less costly one
b)
cheaper product
c)
lower priced item
d)
bargain
e)
substitute
25.
The ________________ is the change in quantity demanded because of the change in the relative price of the product.
a)
substitution effect
b)
income effect
c)
price effect
d)
relative price effect
e)
complementary effect
26.
Together, the income and substitution effects explain why ________________ increase their consumption of CDs from 6 to 10 when the price drops from $15 to $10.
a)
consumers
b)
customers
c)
buyers
d)
purchasers
e)
users
27.
Whenever a price change causes a change in quantity demanded, the change appears graphically as a ________________.
a)
movement along the demand curve
b)
shift of the demand curve
c)
change in the price point
d)
change in quantity
e)
change in demand
28.
The change in quantity demanded, as illustrated in Figure 4.3, can be either an ________________, but in either case the demand curve itself does not shift.
a)
increase or a decrease
b)
up or down movement
c)
shift to the left or right
d)
small or large change
e)
positive or negative change
29.
Sometimes ________________ change while the price remains the same.
a)
other factors
b)
external variables
c)
other prices
d)
incomes
e)
tastes
30.
When this happens, people may decide to buy different ________________ at the same prices.
a)
amounts of the product
b)
quantities of the item
c)
number of goods
d)
units
e)
quantity of CDs
31.
This is known as a ________________.
a)
change in demand
b)
change in quantity demanded
c)
substitution effect
d)
income effect
e)
market shift
32.
As a result, the entire ________________ shifts—to the right to show an increase in demand, or to the left to show a decrease in demand.
a)
demand curve
b)
demand schedule
c)
supply curve
d)
price level
e)
market line
33.
Therefore, a change in demand results in an entirely ________________, while a change in quantity demanded is a movement along the original demand curve.
a)
new demand curve
b)
new demand schedule
c)
new quantity
d)
different price
e)
shifted curve
34.
A change in demand is ________________ in the schedule and graph in Figure 4.4.
a)
illustrated
b)
shown
c)
demonstrated
d)
pictured
e)
displayed
35.
Note that Panel A has a third ________________ showing that people are willing to buy different amounts at each and every price.
a)
column
b)
row
c)
heading
d)
chart
e)
line
36.
At a price of $15, for example, ________________ are now willing to buy 10 CDs instead of 6, moving from point a to point a´.
a)
consumers
b)
people
c)
buyers
d)
purchasers
e)
customers
37.
When this information is transferred to the graph, the ________________ appears to have shifted to the right.
a)
demand curve
b)
supply curve
c)
price point
d)
demand schedule
e)
market line
38.
When demand changes, a new schedule or curve must be ________________ to reflect the new quantities demanded at all possible prices.
a)
constructed
b)
drawn
c)
created
d)
generated
e)
designed
39.
Demand can change because of changes in the ________________: consumer income, consumer tastes, the price of related goods, expectations, and the number of consumers.
a)
determinants of demand
b)
factors of demand
c)
causes of demand
d)
elements of demand
e)
drivers of demand
40.
Changes in ________________ can cause a change in demand.
a)
consumer income
b)
consumer taste
c)
price of related goods
d)
expectations
e)
number of consumers
41.
An increase in income means people can ________________ at all possible prices.
a)
afford to buy more
b)
spend more money
c)
purchase more
d)
save less
e)
feel richer
42.
Suppose, for example, that Mike and Julia get a ________________, which allows them to buy more CDs.
a)
raise
b)
bonus
c)
promotion
d)
windfall
e)
gift
43.
Instead of Mike and Julia each buying 3 for a total of 6 when the price is $15, they can now each buy 5—for a ________________ of 10.
a)
total
b)
sum
c)
number
d)
quantity
e)
amount
44.
If we plot how many CDs would be purchased at every possible price in the market as ________________ in Figure 4.4, then it appears as if the curve has shifted to the right.
a)
demand curve D1
b)
demand curve D2
c)
supply curve S1
d)
supply curve S2
e)
demand line
45.
Exactly the opposite could happen if there was a decrease in ________________ and Mike and Julia bought less.
a)
income
b)
demand
c)
price
d)
supply
e)
taste
46.
The demand curve would then shift to the left, ________________.
a)
showing a decrease in demand
b)
showing an increase in demand
c)
showing a decrease in quantity
d)
showing a movement along the curve
e)
showing a change in price
47.
Consumers sometimes change their ________________ about the products they buy.
a)
minds
b)
preferences
c)
decisions
d)
choices
e)
buying habits
48.
Advertising, fashion trends, and even changes in the season can ________________.
a)
affect consumer tastes
b)
influence buying
c)
change preferences
d)
alter demand
e)
impact choices
49.
For example, when a product is successfully advertised, its ________________ and people tend to buy more of it.
a)
popularity increases
b)
demand rises
c)
sales improve
d)
market expands
e)
reputation grows
50.
As a result, the ________________ shifts to the right.
a)
demand curve
b)
supply curve
c)
price line
d)
demand schedule
e)
equilibrium point
51.
On the other hand, people will buy less of a product if they ________________.
a)
get tired of it
b)
find it boring
c)
lose interest
d)
prefer alternatives
e)
can't afford it
52.
This is exactly what happens when a ________________ about a product appears.
a)
rumor or unfavorable report
b)
negative review
c)
price change
d)
new competitor
e)
bad advertisement
53.
When fewer people want the product at all possible prices, the ________________, showing a decrease in demand.
a)
demand curve shifts to the left
b)
demand curve shifts to the right
c)
quantity demanded decreases
d)
price increases
e)
demand schedule changes
54.
In addition, the development of new ________________ can have a dramatic and relatively sudden impact on consumer preferences.
a)
products
b)
technologies
c)
goods
d)
services
e)
trends
55.
For example, when music CDs were first introduced on the market, they ________________ for cassette players and tapes, shifting the demand curves for both to the left.
a)
reduced the demand
b)
decreased the price
c)
increased the supply
d)
lowered the cost
e)
eliminated the need
56.
When the iPod and similar ________________ arrived, the demand for CDs and CD players decreased.
a)
devices
b)
products
c)
technology
d)
gadgets
e)
services
57.
Sometimes the change in consumer tastes and preferences is relatively rapid, and sometimes the change ________________.
a)
occurs more slowly
b)
is more gradual
c)
takes time
d)
is less noticeable
e)
is less dramatic
58.
In recent years, for example, consumer concerns about ________________ have slowly increased the demand for healthful foods.
a)
health
b)
nutrition
c)
well-being
d)
fitness
e)
cost
59.
A change in the price of related products can cause a ________________.
a)
change in demand
b)
change in quantity demanded
c)
substitution effect
d)
income effect
e)
market shift
60.
Some products are known as ________________ because they can be used in place of other products.
a)
substitutes
b)
complements
c)
related goods
d)
replacements
e)
alternatives
61.
For example, if people treat butter and margarine as substitutes, a rise in the price of butter will cause an ________________.
a)
increase in the demand for margarine
b)
decrease in the demand for margarine
c)
shift in the supply of margarine
d)
drop in the price of margarine
e)
shortage of margarine
62.
Likewise, a rise in the price of margarine would cause the ________________ to increase.
a)
demand for butter
b)
supply of butter
c)
price of butter
d)
quantity demanded of butter
e)
production of butter
63.
In general, the demand for a product tends to increase if the price of its ________________.
a)
substitute goes up
b)
complement goes up
c)
substitute goes down
d)
complement goes down
e)
related good decreases
64.
The demand for a product tends to decrease if the price of its ________________.
a)
substitute goes down
b)
substitute goes up
c)
complement goes down
d)
complement goes up
e)
related good increases
65.
Other related goods are known as ________________, because the use of one increases the use of the other.
a)
complements
b)
substitutes
c)
necessities
d)
luxuries
e)
inferior goods
66.
Personal computers and ________________ are two complementary goods.
a)
software
b)
monitors
c)
printers
d)
tables
e)
phones
67.
When the price of computers decreases, ________________ and more software.
a)
consumers buy more computers
b)
consumers buy less computers
c)
producers make more computers
d)
demand for software decreases
e)
supply of software increases
68.
If the price of computers spirals upward, consumers would buy fewer computers and ________________.
a)
less software
b)
more software
c)
fewer monitors
d)
fewer printers
e)
more substitutes
69.
Thus, an increase in the price of one good usually leads to a ________________ for its complement.
a)
decrease in the demand
b)
increase in the demand
c)
movement along the curve
d)
shift to the right
e)
price increase
70.
The way people think about the ________________ can affect demand.
a)
future
b)
past
c)
present
d)
economy
e)
prices
71.
For example, suppose that a company announces a technological breakthrough in ________________.
a)
television picture quality
b)
computer speed
c)
phone battery life
d)
car fuel efficiency
e)
music formats
72.
Even if the new product might not be available for a year, some consumers might ________________ due to their expectations.
a)
hold off buying a TV today
b)
buy a TV immediately
c)
purchase less of the old product
d)
buy more of the old product
e)
not change their behavior
73.
Purchasing less at every price would cause ________________, illustrated by a shift of the demand curve to the left.
a)
demand to decline
b)
demand to increase
c)
quantity demanded to decrease
d)
quantity demanded to increase
e)
supply to increase
74.
Of course, ________________ can also have the opposite effect on market demand.
a)
expectations
b)
prices
c)
income
d)
tastes
e)
substitutes
75.
For example, if the weather service forecasts a bad year for crops, people might ________________ before these items actually become scarce.
a)
stock up on some foods
b)
stop buying some foods
c)
wait for prices to drop
d)
switch to substitutes
e)
ignore the forecast
76.
The willingness to buy more because of expected future ________________ would cause demand to increase, shown by a shift of the demand curve to the right.
a)
shortages
b)
surpluses
c)
price drops
d)
sales
e)
price hikes
77.
A change in income, tastes, and prices of related products affects ________________—and hence the market demand curve.
a)
individual demand schedules and curves
b)
market equilibrium
c)
supply curves
d)
complementary goods
e)
substitute goods
78.
The ________________ can also change if there is a change in the number of consumers.
a)
market demand curve
b)
individual demand curve
c)
supply curve
d)
price
e)
income
79.
Suppose that Devan, one of Mike’s and Julia’s friends, ________________.
a)
decides to purchase CDs
b)
decides to buy music
c)
enters the market
d)
gets a raise
e)
leaves the market
80.
We would add the number of CDs that Devan would buy at all possible prices to those for ________________.
a)
Mike and Julia
b)
his friends
c)
all consumers
d)
the market
e)
the total
81.
The market demand curve would shift to the ________________ to reflect an increase in demand.
a)
right
b)
left
c)
up
d)
down
e)
center
82.
If Mike or Devan should leave the market, the ________________ purchased would decrease, shifting the market demand curve to the left.
a)
total number of CDs
b)
total quantity of CDs
c)
amount of music
d)
price of CDs
e)
supply of CDs
83.
Go back to page 97. Why would McDonald’s go to the ________________ of redesigning its restaurants?
a)
trouble and expense
b)
high cost
c)
difficult path
d)
corporate effort
e)
business action
84.
The company realizes that ________________ is changing.
a)
consumer demand
b)
market conditions
c)
company policy
d)
product availability
e)
customer base
85.
This means the company has to change too, or it risks losing business to ________________ that better meet customer demand.
a)
competitors
b)
rivals
c)
other businesses
d)
other companies
e)
substitutes
86.
Such changes in demand have an ________________ on both the demand schedule and the demand curve.
a)
effect
b)
impact
c)
influence
d)
result
e)
consequence
87.
When it comes to ________________, there are two types of changes.
a)
demand
b)
supply
c)
price
d)
consumption
e)
production
88.
When the price of a product changes while all other factors remain the same, we have a change in the ________________.
a)
quantity demanded
b)
demand curve
c)
demand schedule
d)
price level
e)
market price
89.
Sometimes other ________________ change while the price remains the same—similar to the change in consumer taste in our news story.
a)
factors
b)
variables
c)
elements
d)
influences
e)
determinants
90.
When this happens, we see a change in ________________.
a)
demand
b)
quantity demanded
c)
price
d)
income
e)
consumption
91.
Look at Figure 4.3 to see what happens when only the ________________ changes and everything else remains constant.
a)
price
b)
demand
c)
income
d)
taste
e)
quantity
92.
Point a on the demand curve shows that six ________________ are demanded at a price of $15.
a)
CDs
b)
items
c)
products
d)
units
e)
services
93.
When the ________________ falls to $10, 10 CDs are demanded.
a)
price
b)
demand
c)
income
d)
quantity
e)
supply
94.
This movement from point a to point b is a change in ________________—a change that is graphically represented as a movement along the demand curve.
a)
quantity demanded
b)
demand
c)
income
d)
taste
e)
price
95.
When the price goes up, ________________ are demanded.
a)
fewer CDs
b)
more CDs
c)
the same number of CDs
d)
no CDs
e)
a higher quantity
96.
When the price goes down, ________________ are demanded.
a)
more
b)
fewer
c)
the same quantity
d)
less
e)
zero
97.
As we will see, the ________________ also help us understand this principle.
a)
income and substitution effects
b)
price change
c)
consumer tastes
d)
number of consumers
e)
expectations
98.
When the price of a product drops, consumers pay less and, as a result, have some extra ________________ to spend.
a)
income
b)
money
c)
cash
d)
wealth
e)
funds
99.
For example, we can see from Figure 4.3 that consumers spent $90 to buy six CDs when the ________________ was $15 per CD.
a)
price
b)
cost
c)
income
d)
demand
e)
quantity
100.
If the price drops to $10, they would spend only $60 on the same quantity, leaving them $30 “richer” because of the drop in ________________.
a)
price
b)
cost
c)
income
d)
demand
e)
quantity
101.
They may even spend some of this extra income on ________________.
a)
more CDs
b)
other products
c)
complementary goods
d)
substitute goods
e)
savings
102.
As a result, part of the ________________ from 6 to 10 units purchased, shown as the movement from point a to point b on the demand curve, is due to consumers feeling richer.
a)
increase
b)
movement
c)
shift
d)
demand
e)
quantity
103.
If the price had gone up, ________________ would have felt a bit poorer and would have bought fewer CDs.
a)
consumers
b)
customers
c)
buyers
d)
purchasers
e)
the public
104.
This illustrates the income effect, the change in quantity demanded because of a ________________ that alters consumers’ real income.
a)
change in price
b)
shift in demand
c)
change in income
d)
substitution effect
e)
change in taste
105.
A ________________ also means that CDs will be relatively less expensive than other goods and services such as concerts and movies.
a)
lower price
b)
higher price
c)
price shift
d)
change in demand
e)
change in income
106.
As a result, consumers will have a ________________ to replace a more costly item—say, going to a concert—with a less costly one—more CDs.
a)
tendency
b)
desire
c)
willingness
d)
choice
e)
reason
107.
The substitution effect is the change in quantity demanded because of the change in the ________________ of the product.
a)
relative price
b)
absolute price
c)
total cost
d)
market value
e)
consumer income
108.
Together, the income and substitution effects explain why consumers increase their ________________ of CDs from 6 to 10 when the price drops from $15 to $10.
a)
consumption
b)
quantity demanded
c)
income
d)
savings
e)
demand
109.
Whenever a ________________ causes a change in quantity demanded, the change appears graphically as a movement along the demand curve.
a)
price change
b)
demand shift
c)
income increase
d)
taste shift
e)
expectation change
110.
The change in quantity demanded, as illustrated in Figure 4.3, can be either an increase or a decrease, but in either case the ________________ itself does not shift.
a)
demand curve
b)
price level
c)
supply curve
d)
income level
e)
quantity demanded
111.
Sometimes other factors change while the ________________ remains the same.
a)
price
b)
quantity
c)
demand
d)
income
e)
taste
112.
When this happens, ________________ may decide to buy different amounts of the product at the same prices.
a)
people
b)
consumers
c)
customers
d)
buyers
e)
the public
113.
This is known as a change in ________________.
a)
demand
b)
quantity demanded
c)
price
d)
income
e)
taste
114.
As a result, the entire demand curve ________________—to the right to show an increase in demand, or to the left to show a decrease in demand.
a)
shifts
b)
moves
c)
changes
d)
increases
e)
decreases
115.
Therefore, a change in demand results in an entirely new demand curve, while a change in quantity demanded is a ________________.
a)
movement along the original demand curve
b)
shift of the demand curve
c)
new price point
d)
change in income
e)
change in taste
116.
A change in demand is illustrated in the ________________ in Figure 4.4.
a)
schedule and graph
b)
table
c)
chart
d)
diagram
e)
illustration
117.
Note that Panel A has a third column showing that people are willing to buy ________________ at each and every price.
a)
different amounts
b)
the same amounts
c)
fewer items
d)
more items
e)
zero items
118.
At a price of $15, for example, consumers are now willing to buy 10 CDs instead of 6, moving from ________________ to point a´.
a)
point a
b)
point b
c)
point c
d)
point d
e)
the origin
119.
When this information is transferred to the graph, the demand curve appears to have ________________ to the right.
a)
shifted
b)
moved
c)
changed
d)
increased
e)
decreased
120.
When demand changes, a new ________________ must be constructed to reflect the new quantities demanded at all possible prices.
a)
schedule or curve
b)
table
c)
graph
d)
chart
e)
price list
121.
Demand can change because of changes in the determinants of demand: consumer income, consumer tastes, the price of related goods, ________________, and the number of consumers.
a)
expectations
b)
substitutes
c)
complements
d)
prices
e)
supply
122.
________________ can cause a change in demand.
a)
Changes in consumer income
b)
Price changes
c)
Supply changes
d)
Movements along the curve
e)
Changes in quantity demanded
123.
An increase in ________________ means people can afford to buy more at all possible prices.
a)
income
b)
demand
c)
price
d)
quantity
e)
taste
124.
Suppose, for example, that ________________ get a raise, which allows them to buy more CDs.
a)
Mike and Julia
b)
consumers
c)
buyers
d)
customers
e)
sellers
125.
Instead of Mike and Julia each buying 3 for a total of 6 when the price is $15, they can now each buy 5—for a total of ________________.
a)
10
b)
6
c)
3
d)
5
e)
15
126.
If we plot how many CDs would be purchased at every possible price in the market as demand curve D1 in Figure 4.4, then it appears as if the ________________ has shifted to the right.
a)
curve
b)
line
c)
demand
d)
quantity
e)
price
127.
Exactly the opposite could happen if there was a decrease in income and ________________ bought less.
a)
Mike and Julia
b)
consumers
c)
the company
d)
the market
e)
buyers
128.
The ________________ would then shift to the left, showing a decrease in demand.
a)
demand curve
b)
supply curve
c)
price
d)
income
e)
quantity
129.
Consumers sometimes change their minds about the ________________ they buy.
a)
products
b)
goods
c)
services
d)
prices
e)
brands
130.
________________, fashion trends, and even changes in the season can affect consumer tastes.
a)
Advertising
b)
Income
c)
Price
d)
Supply
e)
Quantity
131.
For example, when a product is ________________, its popularity increases and people tend to buy more of it.
a)
successfully advertised
b)
priced lower
c)
available everywhere
d)
new to the market
e)
highly reviewed
132.
As a result, the demand curve ________________ to the right.
a)
shifts
b)
moves
c)
stays the same
d)
decreases
e)
increases
133.
On the other hand, ________________ will buy less of a product if they get tired of it.
a)
people
b)
consumers
c)
customers
d)
buyers
e)
the market
134.
This is exactly what happens when a rumor or unfavorable report about a ________________ appears.
a)
product
b)
company
c)
price
d)
competitor
e)
market
135.
When ________________ want the product at all possible prices, the demand curve shifts to the left, showing a decrease in demand.
a)
fewer people
b)
more people
c)
a few buyers
d)
all consumers
e)
only some consumers
136.
In addition, the ________________ can have a dramatic and relatively sudden impact on consumer preferences.
a)
development of new products
b)
price change
c)
income increase
d)
successful advertising
e)
change in expectations
137.
For example, when music CDs were first introduced on the market, they reduced the demand for cassette players and tapes, shifting the ________________ to the left.
a)
demand curves for both
b)
supply curves for both
c)
price levels
d)
total demand
e)
consumer income
138.
When the ________________ arrived, the demand for CDs and CD players decreased.
a)
iPod and similar devices
b)
Walkman
c)
internet
d)
cell phone
e)
new music styles
139.
Sometimes the change in ________________ is relatively rapid, and sometimes the change occurs more slowly.
a)
consumer tastes and preferences
b)
consumer income
c)
technology
d)
market price
e)
supply
140.
In recent years, for example, ________________ about health have slowly increased the demand for healthful foods.
a)
consumer concerns
b)
government regulations
c)
company advertising
d)
price increases
e)
income levels
141.
A change in the price of ________________ can cause a change in demand.
a)
related products
b)
all products
c)
substitute goods
d)
complementary goods
e)
consumer income
142.
Some ________________ are known as substitutes because they can be used in place of other products.
a)
products
b)
goods
c)
services
d)
items
e)
brands
143.
For example, if people treat butter and margarine as substitutes, a rise in the ________________ will cause an increase in the demand for margarine.
a)
price of butter
b)
demand for butter
c)
supply of butter
d)
income
e)
quantity of butter
144.
Likewise, a rise in the price of margarine would cause the demand for ________________ to increase.
a)
butter
b)
margarine
c)
substitutes
d)
complements
e)
other goods
145.
In general, the demand for a product tends to ________________ if the price of its substitute goes up.
a)
increase
b)
decrease
c)
shift left
d)
move along the curve
e)
stabilize
146.
The demand for a product tends to ________________ if the price of its substitute goes down.
a)
decrease
b)
increase
c)
shift right
d)
move along the curve
e)
stay the same
147.
Other related goods are known as complements, because the ________________ increases the use of the other.
a)
use of one
b)
price of one
c)
demand for one
d)
supply of one
e)
cost of one
148.
Personal ________________ and software are two complementary goods.
a)
computers
b)
electronics
c)
services
d)
accessories
e)
brands
149.
When the price of computers decreases, consumers buy more computers and ________________.
a)
more software
b)
less software
c)
fewer computers
d)
less hardware
e)
more substitutes
150.
If the price of computers ________________, consumers would buy fewer computers and less software.
a)
spirals upward
b)
falls rapidly
c)
remains constant
d)
shifts left
e)
stabilizes
151.
Thus, an ________________ of one good usually leads to a decrease in the demand for its complement.
a)
increase in the price
b)
decrease in the price
c)
increase in the demand
d)
decrease in the supply
e)
shift of the curve
152.
The way people think about the future can ________________.
a)
affect demand
b)
change prices
c)
shift supply
d)
alter income
e)
create substitutes
153.
For example, suppose that a ________________ announces a technological breakthrough in television picture quality.
a)
company
b)
store
c)
government
d)
consumer group
e)
media outlet
154.
Even if the ________________ might not be available for a year, some consumers might hold off buying a TV today due to their expectations.
a)
new product
b)
television
c)
price drop
d)
technology
e)
advertisement
155.
Purchasing less at every price would cause demand to decline, illustrated by a ________________.
a)
shift of the demand curve to the left
b)
shift of the demand curve to the right
c)
movement along the curve
d)
decrease in quantity demanded
e)
price drop
156.
Of course, expectations can also have the opposite ________________ on market demand.
a)
effect
b)
impact
c)
influence
d)
result
e)
consequence
157.
For example, if the ________________ forecasts a bad year for crops, people might stock up on some foods before these items actually become scarce.
a)
weather service
b)
government
c)
farming industry
d)
news channel
e)
retailer
158.
The ________________ to buy more because of expected future shortages would cause demand to increase, shown by a shift of the demand curve to the right.
a)
willingness
b)
desire
c)
ability
d)
tendency
e)
need
159.
A change in ________________ affects individual demand schedules and curves—and hence the market demand curve.
a)
income, tastes, and prices of related products
b)
quantity demanded
c)
the demand curve
d)
supply
e)
expectations only
160.
The market demand curve can also change if there is a change in the ________________.
a)
number of consumers
b)
average income
c)
consumer taste
d)
price of goods
e)
supply level
161.
Suppose that ________________, one of Mike’s and Julia’s friends, decides to purchase CDs.
a)
Devan
b)
a competitor
c)
a new buyer
d)
a seller
e)
a company
162.
We would add the number of CDs that ________________ would buy at all possible prices to those for Mike and Julia.
a)
Devan
b)
consumers
c)
customers
d)
buyers
e)
sellers
163.
The market demand curve would shift to the right to reflect an ________________.
a)
increase in demand
b)
decrease in demand
c)
movement along the curve
d)
price drop
e)
income increase
164.
If Mike or Devan should leave the ________________, the total number of CDs purchased would decrease, shifting the market demand curve to the left.
a)
market
b)
town
c)
store
d)
country
e)
social group
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