Name____________________________
Demand Test (80 points)
Listing. 4 points each. (8 total points)
1. List two characteristics of a good that has inelastic demand.
2. List two characteristics of a good that has elastic demand.
Short Answer. (Make sure you give an explanation of your answer!). 6 points each (12 total points)
3. Give an example of a luxury good OR a necessity good. Draw a graph to show whether THE
GOOD YOU CHOSE would have an elastic or inelastic demand curve.
4. Give an example of the Law of Demand in YOUR everyday life. (Be sure to specify the
relationship between price and quantity demanded.)
Graphing. (Be sure to completely label your graphs!) 10 points each. (50 total points)
5. If bread and butter are complementary goods, and the price of product butter decreases,
construct a correctly labeled graph for bread showing what would happen to the equilibrium
price and equilibrium quantity of bread.
6. If coffee and tea are substitute goods, and the price of coffee decreases, construct a
correctly labeled graph for tea showing what would happen to the equilibrium price and
equilibrium quantity of tea.
7. Create and use two correctly labeled graphs to show how you would graph a decrease in
quantity demanded and then show how you would graph a decrease in demand. Be specific
with your arrows and labels.
8. Read the following headline.
Studies show that eating oatmeal everyday will improve your health.
Identify which non-price determinant is happening. Construct a correctly labeled graph
showing the effects of the change in demand on the equilibrium price and the equilibrium
quantity of OATMEAL .
9. Read the following headline.
Statistics show that the average worker pay is 20% lower than last year.
Identify which non-price determinant is happening. Construct a correctly labeled graph
showing the effects of the change in demand on the equilibrium price and the equilibrium
quantity of NORMAL GOODS in general.
10. List 5 non-price determinants of demand. 2 points each (10 total points)