Demand

What are the 5 determinants of demand?

(1) Tastes of preferences changes (2) Number of buyers change (3) Income (4) Price of related goods (5) Expectations of consumers

Change in quantity demanded is a shift from what to what?

One point to another

Which way does the curve shift when there is an increase in demand? A decrease?

Right/ left

The Law of Demand States: "All else equal, as (blank) falls, the (blank) demanded rises" (and vice versa)

price; quantity

Demand is defined as the various amounts of product consumers are (blank and blank) to buy at each or a series of possible prices during a (blank) period of time

willing and able; specific

Key foundation of economics

Supply and Demand

Acronym for 5 determinants of demand

TRIBE

If the price of a product decreases, we would expect: a. Demand to increase b. Quantity supplied to decrease c. Supply to decrease d. Quantity supplied to increase

B- Quantity supplied to decrease

In which of the following statements are the terms "demand" and "quantity demanded" used correctly? a. When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell. b. When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell. c. When the price of ice cream rose, the demand for ice cream fell, and the quantity demanded of ice cream toppings fell. d. None of these statements use the terms correctly.

B- When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell

Which of the following will NOT cause a change in the demand for product A? a. A change in the number of buyers b. A change in the price of A c. A decline in consumer incomes d. A decrease in the price of close-substitute product B

B- a change in the price of A

Which of the following would not shift the demand curve for beef? a. A widely publicized study that indicates beef consumption increases one's cholesterol. b. A reduction in the price of cattle feed. c. An effective advertising campaign by pork producers. d. A change in the incomes of beef consumers.

B- a reduction in the price of cattle feed

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

B- an increase in incomes of buyers of product K

A recent study found that an increase in the federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that: a. beer and marijuana are substitute goods. b. beer and marijuana are complementary goods. c. beer is an inferior good. d. marijuana is an inferior good.

B- beer and marijuana are complementary goods

A decrease in supply, holding demand constant, will cause: a. Higher prices and a large quantity sold b. Higher prices and a smaller quantity sold c. Lower prices and a smaller quantity sold d. Lower prices and a larger quantity sold

B- higher prices and a smaller quantity sold

An increase in the quantity demanded means that: a. given supply, the price of the product can be expected to decline. b. price has declined and consumers therefore want to purchase more of the product. c. the demand curve has shifted to the right. d. the demand curve has shifted to the left.

B- price has declined and consumers therefore want to purchase more of the product

Which of the following is NOT a determinant of demand for laptop computers? a. Income of buyers of laptop computers b. The cost of inputs for producing laptop computers c. The prices of related goods such as software and iPads d. Expectations about the future price of laptop computers

B- the cost of inputs for producing laptop computers

Other things equal, which of the following might shift the demand curve for gasoline to the left? a. The discovery of vast new oil reserves in Montana. b. The development of a low-cost electric automobile. c. An increase in the price of train and air transportation. d. A large decline in the price of automobiles.

B- the development of a low-cost electric automobile

Which would be a likely cause of an increase in the demand for pizza? a. A reduced desire for take-out and fast-food dining b. A decrease in the price of hamburger sandwiches c. A decrease in the prices of cheese, pepperoni, and mushrooms d. A health report showing eating pizza reduces stress

A health report showing eating pizza reduces stress

In presenting the idea of a demand curve, economists presume the most important variable in determining the quantity demanded is: a. the price of the product itself. b. consumer income. c. the prices of related goods. d. consumer tastes.

A- the price of the product itself

When economists speak of "demand" in a particular market, they refer to: a. The whole demand curve or schedule b. One point on the demand curve c. One price-quantity combination on the demand schedule d. How much of an item buyers want to buy at a given price

A- the whole demand curve or schedule

If the demand and supply curves for product X are stable, a government-mandated increase in the price of X will: a. increase the supply of X and decrease the demand for X. b. increase the demand for X and decrease the supply of X. c. increase the quantity supplied of X and decrease the quantity demanded of X. d. decrease the quantity supplied of X and increase the quantity demanded of X.

C- increase the quantity supplied of X and decrease the quantity demanded of X

The demand curve shows the relationship between: a. money income and quantity demanded. b. price and production costs. c. price and quantity demanded. d. consumer tastes and quantity demanded.

C- price and quantity demanded

If the price of product L increases, the demand curve for close-substitute product J will: a. shift downward toward the horizontal axis. b. shift to the left. c. shift to the right. d. remain unchanged.

C- shift to the right

Other things being equal, the law of demand suggests that as: a. The demand of iPads increases, this will cause the price to increase b. Income increases, the quantity of iPads demanded will increase c. The price of iPads decreases, the quantity demanded will increase d. The price of iPads decreases, the quantity demanded will decrease

C- the price of iPads decreases, the quantity demanded will increase

Economists use the term "demand" to refer to: a. a particular price-quantity combination on a stable demand curve. b. the total amount spent on a particular commodity over a fixed time period. c. an upsloping line on a graph that relates consumer purchases and product price. d. a schedule of various combinations of market prices and amounts/quantities demanded.

D- a schedule of various combinations of market prices and amounts/quantities demanded

Which of the following will cause the demand curve for product A to shift to the left? a. Population growth that causes an expansion in the number of persons consuming b. An increase in money income if A is a normal good. c. A decrease in the price of complementary product C. d. An increase in money income if A is an inferior good.

D- an increase in money income if A is an inferior good