Vocab
Demand Graph
Determinants of Demand
Graph Questions
100
The place of exchange of goods and services between consumers and producers.
market
100
What are the 3 main parts of the demand graph?
prices, quantities, and demand curve
100
What role do the determinants of demand play in the market?
a) increase or decrease quantity demanded
b) shift the demand curve left or right
c) help sell more products
b) shift the demand curve left or right
100
In the market graph, the demand curve is ______ sloping.
downward
200
How much of a good or service a consumer is willing and able to purchase at a specific price.
quantity demanded
200
What is the name of the table showing the price, quantities demand, and possible points at which the market could be selling their product?
demand schedule
200
If cooking with Butter becomes the latest craze, what would happen to demand?
increase in demand (popularity)
200
If the demand curve shifts LEFT, what happens to demand?
decrease in demand
300
Demand is a good or service ________ are willing and able to _____ at various possible prices.
consumers, buy
300
The demand graph is a model to illustrate the
law of demand
(behavior of consumers at the market)
300
Which of the following determinants cause demand to INCREASE?
a) less consumers in a market
b) product goes out of style
c) price of a complementary good decreases
c) price of a complementary good decreases
300
Which of the following is correct?
a) If there is a change in the price, there will be a MOVEMENT along the demand curve to show an increase or decrease in quantity demanded.
b) If there is a change in the price, there will be a SHIFT of the demand curve to show an increase or decrease in demand.
a) If there is a change in the price, there will be a MOVEMENT along the demand curve to show an increase or decrease in quantity demanded.
400
The transactions in which a buyer and a seller are free to choose the terms of exchange for a good or service.
voluntary exchange
400
What happens to the quantity demanded if the prices decrease?
quantity demanded will INCREASE
400
What is the name of the determinants described below:
Example: If an item that serves a similar function becomes expensive, consumers will demand more of the cheaper item.
price of a substitute good increases
400
What happens to the quantity demanded with a price increase from $6 to $10?
decrease by 2 units
500
The law of demand states that
As price goes up, quantity demanded goes ____.
As price goes down, quantity demanded goes _____.
down, up
500
What does the demand curve show?
The prices and quantities demanded for a certain product.
500
For the 3 scenarios below determine if demand will increase or decrease:
1. Consumers believe the economy will improve.
2. The price of milk is $1 and cereal $4, but suddenly the price of cereal increases to $6.
3. Holiday season is over and people spent a lot of money.
1. increase
2. decrease
3. decrease
500
Which of the following graph sketches illustrates a decrease in quantity demanded?
a)
c)