econ1. The demand curve represents the purchasing behavior of

Which of the following scenarios would NOT shift the demand curve for picture frames?

A decrease in the price of picture frames

Which of the following will result in an increase in demand due to consumer expectations?

Consumers think it will be a cold winter, so they buy more blankets

What two effects help explain the downward sloping shape of the demand curve?

Substitute and Income Effects

If the price of peanut butter decreases, then what will happen to the demand for jelly?

There will be an increase in demand for jelly

Movement along the demand curve means there is a(n)

change in the product's price

The demand curve represents the purchasing behavior of

consumers

If consumers expect that they will soon lose their jobs due to a poor economy, then we know that

demand for most normal goods will fall

For a normal good, when the consumer income of an economy decreases,* 2/2

fewer consumers will purchase that product

Which of the graphs represents the demand curve?

graph a, blue line

Which of the graphs represents a decrease in demand?

graph b, arrow pointing towards the blue line

Which of the graphs represents an increase in demand?

graph c, arrow pointing towards the purple line

On the demand curve, price and quantity demanded are

indirectly (inversely) related

If the price of gas goes up, there will be

no change to the demand curve for gas

If suddenly a large population of retirees move to your town, then we can expect

the demand for retirement homes to increase

Which of the following summarizes the Law and Demand?

when the price of the product is lower, consumers will purchase more of that product