economics unit 1 demand quiz

the law of demand states that a. price and quantity demanded are inversely related b. the larger the number of buyer in a market, the lower will be the product price c. price and quantity demanded are directly related d. consumers will buy more or a product at high prices than at low prices

a. price and quantity demanded are inversely related

in the past few years, the demand for donuts has greatly increases. this increase in demand might best be explained by a. an increase in the cost of making donuts b. a change in buyer tastes c. consumers expecting donut prices to fall d. an increase in the price of coffee

b. a change in buyer tastes

a demand curve: a. graphs an upward-sloping line b. indicates the quantity demanded at each price in a series of prices c. shows the relationship between price and quantity supplied

b. indicates the quantity demanded at each price in a series of prices

when the price of a product increases, a consumer is able to buy less of it with a given amount of income (his/her real income has decreased) this describes: a. the cost effect b. the inflationary effect c. the income effect d. the substitution effect

c. the income effect

which of the following will not cause the demand for product K to change? a. a change un the price of close-substitute product J b. an increase in consumer incomes c. a change in consumer tastes d. a change in the price of K

d. a change in the price of k

true or false a rise in the price of a computer increases the demand for computers because a computer is a normal good

false

true or false if people's incomes fall and all other influences on buying plans remain the same, the demand for computers will decrease and there will be a movement along the demand curve.

false

true or false if the quantity of ice cream demanded at each price increases, there is a movement along the demand curve for ice cream

false

true or false the law of demand states that other things remaining the same, if the price of a good rises, the quantity demanded of that good increases

false

will demand shift left or right if income increases and product A is an inferior good

left

will demand shift left or right if product a becomes less fashionable

left

will demand shift left or right if the price of complementary product D increases

left

will demand shift left or right if consumers anticipate that the price of A will be higher in the near future

right

will demand shift left or right if the price of substitute product B increases

right

true or false when linda's income increases, her demand for movies increases. for linda, movies are a normal good

true