Name_____________
Demand/Quantity Demanded
Fill in the blank.
1. An inverse relationship between the price of a good and the quantity
buyers are willing to purchase is called the ____________________.
2. When the ENTIRE demand curve shifts, this is a change in _________
itself.
3. But a change in the quantity demanded is results solely from
_____________________________.
True or False.
_____If the price of iPods goes down, the demand for iPods will go up.
_____If the price of iPods goes down, the quantity demanded for iPods
will go up.
_____A change in income can affect quantity demanded.
_____As the Beanie Babie fad ended, the quantity demanded of Beanie
Babies declined.
_____When the price of a Chevy pickup goes up, the demand curve
shifts right.
_____When the price of a Chevy pickup goes down, the point along the
Quantity Demanded curve moves left.
Definitions.
Define/discuss law of demand –
Define/discuss a change in quantity demanded –
Define/discuss a change in demand itself –
Define/discuss normal goods vs. inferior goods –
Define/discuss substitute goods vs. complementary goods –
You Make the Call.
Read “You Make the Call” on pg. 46 and answer Yes or No, and WHY.
Multiple Choice.
1.
According to the law of demand, when will higher corn prices reduce the quantity demanded of
corn?
a.
Always.
b. When the supply of corn is fixed.
c.
When nonprice determinants, like income and the number of buyers, are unchanged.
d. When there are no shortages or surpluses of corn.
2.
The law of demand is illustrated by a demand curve that is:
a.
horizontal.
b. downward-sloping.
c.
vertical.
d. upward-sloping.
3.
Which of the following is true for the law of demand?
a.
Sellers increase the quantity of a good available as the price of the good increases.
b.
An increase in price results from false needs.
c.
There is an inverse relationship between the price of a good and the quantity of the good
demanded.
d.
Prices increase as more units of a product are demanded.
4.
A market demand curve:
a.
is the sum of the demand curves of all the individuals in a particular market.
b.
is determined by the demand of those who purchase in quantity.
c.
is always horizontal.
d.
cannot be estimated.
e.
never includes demand by the government.
5.
Which of the following can bring about a change in the quantity demanded?
a.
Change in supply.
b.
Change in quality.
c.
Change in income.
d.
Change in product price.
e.
Change in taste.
6.
At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8
units. Martha says Sam’s demand has decreased. Is Martha correct?
a.
Yes, Martha is correct. Sam’s demand has decreased.
b.
No, Martha is incorrect. Sam’s demand has increased.
c.
No, Martha is incorrect. Sam’s quantity demanded has decreased, and his demand has not
changed.
d.
No, Martha is incorrect. Sam’s quantity demanded has increased, and his demand
has increased.
e.
No, Martha is incorrect. Sam’s demand has increased, and his quantity demanded
has decreased.