Law of demand
When price goes up, quantity demanded goes …
Down
Movement along the curve is called…
Change in quantity demanded
Goods that serve the same purpose
Substitute goods
When people earn more money, demand usually…
Increases
More people in the market means demand…
Increases
When price goes down, quantity demanded goes…
Up
Shift of the curve is called…
Change in demand
Goods that are used together
Complementary goods
Popularity of a product affects…
Preferences
Beliefs about the future affect…
Future expectations
The relationship between price and quantity demanded is (inverse or direct)
Inverse
What causes a movement along the curve?
Change in price
If the price of one good drops and increases demand for another, they are…
Complementary goods
Change in demand due to income change is called…
Income effect
Government policies can affect…
Number of consumers / demand
If a product becomes cheaper compared to another similar product, what effect happens?
A) Income effect
B) Substitution effect
C) Market effect
Substitution effect
What happens to the demand curve when income increases for a normal good?
A) Moves along the curve
B) Shifts to the right
C) Shifts to the left
Shifts to the right
If the price of Coca-Cola increases and people buy more Pepsi, Pepsi is a…
A) Complement
B) Substitute
C) Inferior good
Substitute
Which type of good increases in demand when income rises?
A) Inferior good
B) Normal good
C) Substitute good
Normal good
If people expect prices to rise in the future, what will they likely do now?
A) Buy less
B) Buy more now
C) Do nothing
Buy more now
Which situation BEST represents an inverse relationship?
A) Price ↓ → Demand ↓
B) Price ↑ → Demand ↑
C) Price ↑ → Demand ↓
Price ↑ → Demand ↓
Which of these would NOT cause a shift in demand?
A) Change in price of the good
B) Change in income
C) Change in preferences
Change in price
If the price of printers goes down, what happens to demand for ink?
A) Decreases
B) Increases
C) Stays the same
Increases
If a product becomes trendy on social media, what happens?
A) Movement along curve
B) Demand decreases
C) Demand shifts right
Demand shifts right
Which situation would decrease demand?
A) Increase in population
B) Negative future expectations
C) Increase in income
Negative future expectations