Chp.2 Demand

If your income were to fall, at each and every price level, you can buy a smaller quantity of each type of good, causing your demand curve to shift _____, which we call _____ in demand. to the right; an increase to the left; a decrease to the right; a decrease to the left; an increase

to the left; a decrease

Why do you have to consider the demand of all potential customers when estimating demand, rather than just looking at current customers? Because changes in price can change marginal costs. Because changes in price can change who your customers are. Because changes in price can change quantity supplied. Because changes in price cannot change who your customers are.

Because changes in price can change who your customers are.

Movement along the demand curve is when a price change causes movement from one point on: a fixed demand curve to the right or to the left. a fixed demand curve to another point on the same curve. a fixed demand curve to another point on a shifted curve. one demand curve to another demand curve.

a fixed demand curve to another point on the same curve.

Your demand for any good will decrease: if the price of its substitutes rises. if its price falls. if the price of its substitutes falls. if the price of its complements falls.

if the price of its substitutes falls.

When graphing demand curves, the quantity demanded goes on the horizontal axis, and _____ goes on the vertical axis. price quantity supplied individual demand marginal benefit

price

An increase in demand is: a shift to the right a shift to the left. a movement along the demand curve. a shift downward.

a shift to the right

The individual demand curve summarizes the _____ decision and explains the demand of _____. selling; one person selling; market buying; one person buying; market

buying; one person

Managers find the market demand curve to be useful, because it shows them how the _____ shapes the total quantity demanded across _____. individual demand; an individual buyer market price; an individual buyer market price; all buyers individual demand; all buyers

market price; all buyers

Which of these factors may shift a market demand curve, but not individual demand curves? income expectations the number and type of buyers preferences

the number and type of buyers

_____ are those goods you buy less of when your income rises. Inferior goods Normal goods Complementary goods Substitute goods

Inferior goods