Law of Demand
The inverse relationship between price and quantity demanded is called.
What is "The Law of Demand."
The amount of a good that consumers are willing and able to purchase at a particular price is:
What is the Quantity Demanded
An increase in the price of a good will:
A) will either increase or decrease the quantity demanded depending on the good.
B) will have no effect on the quantity demanded.
C) will result in a decrease in the quantity demanded.
D) will result in an increase in the quantity demanded.
What is C) will result in a decrease in the quantity demanded.
Which of the following is NOT a determinant of demand?
a) Consumer income
b) The price of related goods
c) Production technology
d) Consumer tastes and preferences
What is "Production Technology."
An increase in taste and preference through marketing, advertising and positive social media would shift the demand curve to the right or left at every price?
what is "shift to the right" change in demand.
The law of demand is illustrated by a demand curve that is:
a) horizontal.
b) vertical.
c) downward sloping.
d) upward-sloping.
What is C) Downward Sloping.
The tendency for consumers to switch away from a good whose price has risen and toward other
goods that have become relatively less
expensive.
What is "The Substitution Effect."
When the demand curve shifts, we call the change in consumer’s willingness to buy the product:
a) a change in both the quantity demanded and a change in demand
b) a change in neither the quantity demanded nor a change in demand.
c) a change in the quantity demanded.
d) a change in demand.
What is d) a change in demand.
Which of the following are shifters/determinants of demand?
a) Taste and Preference
b) Related Goods: Complements
c) Related Goods: Substitutes
d) all of the above
What is "d) all of the above."
When the price of a substitute good X increases, demand for good Y
a) increases
b) decreases
c) moves along the demand curve
d) stays the same
What is "a) increases. Demand for its substitute is cheaper by default and shifts to the right at every price point.
A table that relates the quantity demanded of a
particular good to its price
What is a "Demand Schedule"
The change in consumption that occurs when a price
increase causes consumers to feel poorer or when a
price decrease causes them to feel richer.
What is "The Income Effect."
Movement along the demand curve, ceteris paribus, is
a) a change in demand or
b) a change in quantity demanded.
What is a "change in Quantity Demanded."
Which of the following are shifters/determinants of demand?
a) Income of buyers
b) number of buyers
c) future expectations
d) all of the above
What is "d) all of the above."
When the price of a complement good X increases, demand for good Y
a) increases
b) decreases
c) moves along the demand curve
d) stays the same
what is demand "b) decreases.
What two effects make up the law of demand?
a) consumer effect and preferences
b) income effect and the substitution effect
c) income effect and number of buyers
d) substitutes and complements
What is b) the income and substitution effect.
The term used to describe a situation in which all else is equal is:
What is a "Ceteris Paribus"
A change in the price of a product will
a) lead to a change in quantity demanded
b) lead to a change in demand
c) have no effect
d) will not follow the low of demand.
What is "lead to a change in quantity demanded."
True/False
When income rises, demand for an inferior good rises.
What is "False: Demand for a superior or normal good rises."
Which of the following is an example of a substitute good?
a) Coffee and cream
b) Coke and Pepsi
c) Gasoline and cars
d) Books and libraries
What is "b) Coke and Pepsi."
A curve that relates the quantity demanded of a good to its price.
What is a "Demand Curve."
A graphical representation of how the quantity demanded by all consumers in the market varies with the price.
What is a "Market Demand Curve."
Which of the following factors would most likely cause a change in the demand for a product, rather than a change in the quantity demanded?
a) A change in the price of the good.
b) A change in consumer preferences.
c) A change in the cost of production.
d) A change in government policy.
What is b) A "change in consumer taste and preferences."
Which of the following is a demand determinant.
a) number of firms
b) government regulation: Taxes
c) number of buyers
d) government regulation: Subsidies
What is "c) number buyers."
Which of the following is not an example of a complement?
a) Coffee and cream
b) Butter and margarine
c) Gasoline and cars
d) Bicycle and helmet
What is b) Butter and Margarine.