Demand Questions- Assignment #4

Does a change in consumer's incomes lead to a movement along the demand curve or a shift in the demand curve? A) Movement along the demand curve B) Shift of the demand curve

B) Shift of the demand curve

Does a change in consumers' tastes lead to a movement along the demand curve or a shift in the demand curve? A) Movement along the demand curve B) Shift of the demand curve

B) Shift of the demand curve

Does a change in price of a complement good lead to a movement along the demand curve or a shift in the demand curve? A) Movement along the demand curve B) Shift of the demand curve

B) Shift of the demand curve

Does a change in price of a substitute good lead to a movement along the demand curve or a shift in the demand curve? A) Movement along the demand curve B) Shift of the demand curve

B) Shift of the demand curve

Two goods for which an increase in the price of one leads to a decrease in the demand for the other: A) substitutes B) complements C) law of demand D) quantity demanded E) inferior good F) normal good

B) complements

Why is the demand curve downward sloping?

Because of the law of the demand; it's the substitution effect, the income effect, and the law of diminishing marginal utility.

The amount of a good that buyers are willing and able to purchase at all possible prices. A) substitutes B) complements C) Demand D) quantity demanded E) inferior good F) normal good

C) Demand

The claim, that others being equal, the quantity demanded of a good falls when the price of a good rises. (As prices goes up, quantity demanded goes down. As prices goes down, quantity demanded goes up.) A) substitutes B) complements C) law of demand D) quantity demanded E) inferior good F) normal good

C) law of demand

A good for which, other things being equal, an increase in income leads to a decrease in demand. A) substitutes B) complements C) law of demand D) quantity demanded E) inferior good F) normal good

E) inferior good

A good for which, other things being equal, an increase in income leads to an increase in demand. A) substitutes B) complements C) law of demand D) quantity demanded E) inferior good F) normal good

F) normal good

Give one example of something that would shift your DEMAND CURVE for movie tickets and explain how.

Let's say that movie tickets and film streaming services are substitutes. If the price of film streaming increases, my demand curve would shift to the right.

Would a change in the price of movie tickets shift the demand curve? Why or why not?

No, a change in the price of movie tickets won't shift the demand curve. It will cause a movement along the demand curve. The cause is an increase or decrease in the price of the product under consideration. Another reason is because if you plot and connect the points, you merely move from one point to another.

What are the demand schedule and the demand curve? How are they related?

A demand schedule is a table that shows the quantity demanded of a good or service at different price levels. A demand curve is a diagram that shows how price of a good and the quantity demanded are related per period of time. They are both related because a demand schedule helps you to create a demand curve. A demand schedule shows specific price points and quantity points. These coordinates can be plotted on a graph. After graphing, you can draw a demand curve connecting those individual points.

Does a change in price lead to a movement along the demand curve or a shift in the demand curve? A) Movement along the demand curve B) Shift of the demand curve

A) Movement along the demand curve

Two goods for which an increase in the price of one leads to an increase in the demand for the other: A) substitutes B) complements C) law of demand D) quantity demanded E) inferior good F) normal good

A) substitutes