Deck 4: 2: Sec 42 Mc Demand

Question 1

Which of these statements best represents the law of demand?

A)When buyers' tastes for a good increase,they purchase more of the good.
B)When income levels increase,buyers purchase more of most goods.
C)When the price of a good decreases,buyers purchase more of the good.
D)When buyers' demands for a good increase,the price of the good increases.

Answer 1

D

Question 2

Figure 4-1
Refer to Figure 4-1.The movement from point A to point B on the graph shows a(n)

A)decrease in demand.
B)increase in demand.
C)decrease in quantity demanded.
D)increase in quantity demanded.

Answer 2

B

Question 3

A downward-sloping demand curve illustrates

A)that demand decreases over time.
B)that prices fall over time.
C)the relationship between income and quantity demanded.
D)the law of demand.

Answer 3

D

Question 4

A decrease in the price of a good will

A)increase demand.
B)decrease demand.
C)increase quantity demanded.
D)decrease quantity demanded.

Question 5

A movement downward and to the right along a demand curve is called a(n)

A)increase in demand.
B)decrease in demand.
C)decrease in quantity demanded.
D)increase in quantity demanded.

Question 6

"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded

A)applies to most goods in the economy.
B)is represented by a downward-sloping demand curve.
C)is referred to as the law of demand.
D)All of the above are correct.

Question 7

A decrease in the price of a good would

A)increase the supply of the good.
B)increase the quantity demanded of the good.
C)give producers an incentive to produce more to keep profits from falling.
D)shift the supply curve for the good to the left.

Question 8

A movement upward and to the left along a demand curve is called a(n)

A)increase in demand.
B)decrease in demand.
C)decrease in quantity demanded.
D)increase in quantity demanded.

Question 9

Figure 4-1
Refer to Figure 4-1.The movement from point A to point B on the graph is caused by a(n)

A)increase in price.
B)decrease in price.
C)decrease in the price of a substitute good.
D)increase in income.

Question 10

Which of the following demonstrates the law of demand?

A)After Jon got a raise at work,he bought more pretzels at $1.50 per pretzel than he did before his raise.
B)Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin,other things equal.
C)Dave buys more donuts at $0.25 per donut than at $0.50 per donut,other things equal.
D)Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

Question 11

The law of demand states that,other things equal,when the price of a good

A)falls,the demand for the good rises.
B)rises,the quantity demanded of the good rises.
C)rises,the demand for the good falls.
D)falls,the quantity demanded of the good rises.

Question 12

An increase in quantity demanded

A)results in a movement downward and to the right along a demand curve.
B)results in a movement upward and to the left along a demand curve.
C)shifts the demand curve to the left.
D)shifts the demand curve to the right.

Question 13

An increase in the price of a good will

A)increase demand.
B)decrease demand.
C)increase quantity demanded.
D)decrease quantity demanded.

Question 14

The law of demand states that,other things equal,an increase in

A)price causes quantity demanded to increase.
B)price causes quantity demanded to decrease.
C)quantity demanded causes price to increase.
D)quantity demanded causes price to decrease.

Question 15

A decrease in quantity demanded

A)results in a movement downward and to the right along a demand curve.
B)results in a movement upward and to the left along a demand curve.
C)shifts the demand curve to the left.
D)shifts the demand curve to the right.

Question 16

The quantity demanded of a good is the amount that buyers are

A)willing to purchase.
B)willing and able to purchase.
C)willing,able,and need to purchase.
D)able to purchase.

Question 17

Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song.Kari's behavior demonstrates the law of

A)price.
B)supply.
C)demand.
D)income.

Question 18

Figure 4-1
Refer to Figure 4-1.It is apparent from the figure that the

A)good is inferior.
B)demand for the good decreases as income increases.
C)demand for the good conforms to the law of demand.
D)All of the above are correct.

Question 19

When the price of a good or service changes,

A)the supply curve shifts in the opposite direction.
B)the demand curve shifts in the opposite direction.
C)the demand curve shifts in the same direction.
D)there is a movement along a given demand curve.

Question 20

The following table contains a demand schedule for a good.
Price
Quantity Demanded
$10
100
$20
Q1
If the law of demand applies to this good,then Q1 could be

A)0.
B)100.
C)200.
D)400.

Question 21

When quantity demanded increases at every possible price,the demand curve has

A)shifted to the left.
B)shifted to the right.
C)not shifted;rather,we have moved along the demand curve to a new point on the same curve.
D)not shifted;rather,the demand curve has become steeper.

Question 22

The market demand curve

A)is the sum of all individual demand curves.
B)is the demand curve for every product in an industry.
C)shows the average quantity demanded by individual demanders at each price.
D)is always flatter than an individual demand curve.

Question 23

Once the demand curve for a product or service is drawn,it

A)remains stable over time.
B)can shift either rightward or leftward.
C)is possible to move along the curve,but the curve will not shift.
D)tends to become steeper over time.

Question 24

A demand schedule is a table that shows the relationship between

A)quantity demanded and quantity supplied.
B)income and quantity demanded.
C)price and quantity demanded.
D)price and income.

Question 25

Suppose that when the price of a 16 oz.to-go cup of gourmet coffee is $4.25,students purchase 750 cups per day.If the price decreases to $3.75 per cup,which of the following is the most likely outcome?

A)Students would purchase fewer than 750 cups per day.
B)Student would continue to purchase 750 cups per day.
C)Students would purchase more than 750 cups per day.
D)We do not have enough information to answer this question.

Question 26

To obtain the market demand curve for a product,sum the individual demand curves

A)vertically.
B)diagonally.
C)horizontally.
D)and then average them.

Question 27

The following table contains a demand schedule for a good.
Price
Quantity Demanded
$30
A
$50
300
If the law of demand applies to this good,then A could be

A)0.
B)100.
C)200.
D)400.

Question 28

The market demand curve

A)is found by vertically adding the individual demand curves.
B)slopes upward.
C)represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
D)represents the sum of the quantities demanded by all the buyers at each price of the good.

Question 29

The line that relates the price of a good and the quantity demanded of that good is called the demand

A)schedule,and it usually slopes upward.
B)schedule,and it usually slopes downward.
C)curve,and it usually slopes upward.
D)curve,and it usually slopes downward.

Question 30

When drawing a demand curve,

A)demand is measured along the vertical axis,and price is measured along the horizontal axis.
B)quantity demanded is measured along the vertical axis,and price is measured along the horizontal axis.
C)price is measured along the vertical axis,and demand is measured along the horizontal axis.
D)price is measured along the vertical axis,and quantity demanded is measured along the horizontal axis.

Question 31

When we move along a given demand curve,

A)only price is held constant.
B)income and price are held constant.
C)all nonprice determinants of demand are held constant.
D)all determinants of quantity demanded are held constant.

Question 32

When quantity demanded decreases at every possible price,the demand curve has

A)shifted to the left.
B)shifted to the right.
C)not shifted;rather,we have moved along the demand curve to a new point on the same curve.
D)not shifted;rather,the demand curve has become flatter.

Question 33

If something happens to alter the quantity demanded at any given price,then

A)the demand curve becomes steeper.
B)the demand curve becomes flatter.
C)the demand curve shifts.
D)we move along the demand curve.

Question 34

The demand curve for a good is a line that relates

A)price and quantity demanded.
B)income and quantity demanded.
C)quantity demanded and quantity supplied.
D)price and income.

Question 35

The following table contains a monthly demand schedule for large,single-topping,carry-out pizzas.
Price
Quantity Demanded
$15
A
$20
25
If the law of demand applies to these pizzas,then A could be

A)0.
B)15.
C)25.
D)30.

Question 36

The following table contains a monthly demand schedule for large,single-topping,carry-out pizzas.
Price
Quantity Demanded
$15
A
$20
25
If the law of demand applies to these pizzas,then A could be

A)40.
B)35.
C)30.
D)All of the above could be correct.

Question 37

Which of the following is not held constant in a demand schedule?

A)income
B)tastes
C)price
D)expectations

Question 38

A market demand curve shows

A)the relationship between price and the number of buyers in a market.
B)how quantity demanded changes when the number of sellers changes.
C)the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good.
D)how much of a good all buyers are willing and able to buy at each possible price.

Question 39

If the price of ice cream rose to $30 per gallon,consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon.If the price of chocolate sauce fell to $0.50 per can,consumers would purchase more chocolate sauce than if the price were $5 per can.These relationships illustrate the

A)law of supply.
B)law of demand.
C)difference between normal and inferior goods.
D)difference between substitute and complement goods.

Question 40

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

A)price-quantity schedule.
B)buyer schedule.
C)demand schedule.
D)demand curve.

Question 41

A decrease in demand is represented by a

A)movement downward and to the right along a demand curve.
B)movement upward and to the left along a demand curve.
C)rightward shift of a demand curve.
D)leftward shift of a demand curve.

Question 42

Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve?
Point
Price
Quantity
A
$1)00
4
B
$1)00
10
C
$1)50
2
D
$1)50
6

A)B only
B)B and D only
C)A and C only
D)D only

Question 43

Figure 4-2
Refer to Figure 4-2.Suppose Phil and Miss Kay are the only consumers in the market.If the price is $10,then the market quantity demanded is

A)0 units.
B)2 units.
C)4 units.
D)6 units.

Question 44

Figure 4-2
Refer to Figure 4-2.Suppose Phil and Miss Kay are the only consumers in the market.If the price is $6,then the market quantity demanded is

A)4 units.
B)6 units.
C)8 units.
D)12 units.

Question 45

Figure 4-4
Yasmine
Mercedes
Refer to Figure 4-4.Which of the following statements is correct?

A)If the price is $6,the market quantity demanded is 15 units.
B)If the price is $9,the market quantity demanded is 24 units.
C)If the price is $12,the market quantity demanded is 9 units.
D)If the price is $15,the market quantity demanded is 39 units.

Question 46

Figure 4-3
Consumer 1
Consumer 2
Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $10 is

A)0 units.
B)5 units.
C)8.33 units.
D)25 units.

Question 47

Figure 4-2
Refer to Figure 4-2.Suppose Phil and Miss Kay are the only consumers in the market.If the price is $12,then the market quantity demanded is

A)0 units.
B)2 units.
C)4 units.
D)6 units.

Question 48

Suppose John and Wayne are the only two demanders of cowboy movies.Each month,John buys six cowboy movies when the price is $10 each,and he buys four cowboy movies when the price is $15 each.Each month,Wayne buys four cowboy movies when the price is $10 each,and he buys two cowboy movies when the price is $15 each.Which of the following points is on the market demand curve?

A)quantity demanded = 2;price = $15
B)quantity demanded = 4;price = $25
C)quantity demanded = 10;price = $10
D)quantity demanded = 16;price = $25

Question 49

Figure 4-3
Consumer 1
Consumer 2
Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $6 is

A)12 units.
B)14 units.
C)19 units.
D)21 units.

Question 50

A leftward shift of a demand curve is called a(n)

A)increase in demand.
B)decrease in demand.
C)decrease in quantity demanded.
D)increase in quantity demanded.

Question 51

A market demand curve shows how the total quantity demanded of a good varies as

A)income varies.
B)price varies.
C)price of the nearest substitute good varies.
D)supply varies.

Question 52

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs)at each price of SUPs,then

A)we will observe a movement downward and to the right along the demand curve for SUPs.
B)we will observe a movement upward and to the left along the demand curve for SUPs.
C)the demand curve for SUPs will shift to the right.
D)the demand curve for SUPs will shift to the left.

Question 53

Figure 4-3
Consumer 1
Consumer 2
Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $15 is

A)0 units.
B)10 units.
C)15 units.
D)25 units.

Question 54

A rightward shift of a demand curve is called a(n)

A)increase in demand.
B)decrease in demand.
C)decrease in quantity demanded.
D)increase in quantity demanded.

Question 55

Figure 4-4
Yasmine
Mercedes
Refer to Figure 4-4.If Yasmine and Mercedes are the only two consumers in the market,then the market quantity demanded at a price of $12 is

A)3 units.
B)6 units.
C)9 units.
D)12 units.

Question 56

Figure 4-4
Yasmine
Mercedes
Refer to Figure 4-4.Suppose Yasmine and Mercedes are the only two consumers in the market.When the market price falls from $12 to $6,the quantity demanded increases by

A)6 units.
B)9 units.
C)12 units.
D)15 units.

Question 57

The sum of all the individual demand curves for a product is called

A)income demand.
B)equilibrium demand.
C)complementary demand.
D)market demand.

Question 58

When the price of peaches changes,the demand curve for peaches

A)shifts because the price of peaches is measured on the vertical axis of the graph.
B)shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph.
C)does not shift because the price of peaches is measured on the vertical axis of the graph.
D)does not shift because the price of peaches is measured on the horizontal axis of the graph.

Question 59

An increase in demand is represented by a

A)movement downward and to the right along a demand curve.
B)movement upward and to the left along a demand curve.
C)rightward shift of a demand curve.
D)leftward shift of a demand curve.

Question 60

Which of the following is not an expression for the sum of all the individual demand curves for a product?

A)total demand
B)market demand
C)equilibrium demand
D)aggregate demand

Question 61

Which of the following would not shift the demand curve for mp3 players?

A)a decrease in the price of mp3 players
B)a fad that makes mp3 players more popular among 12-25 year olds
C)an increase in the price of digital music downloads,a complement for mp3 players
D)a decrease in the price of satellite radio,a substitute for mp3 players

Question 62

Each of the following is a determinant of demand except

A)tastes.
B)production technology.
C)expectations.
D)the prices of related goods.

Question 63

If Max experiences a decrease in his income,then we would expect Max's demand for

A)each good he purchases to remain unchanged.
B)normal goods to decrease.
C)luxury goods to increase.
D)inferior goods to decrease.

Question 64

A movement along the demand curve might be caused by a change in

A)income.
B)the prices of substitutes or complements.
C)expectations about future prices.
D)the price of the good or service that is being demanded.

Question 65

Which of the following is not a determinant of demand?

A)the price of a resource that is used to produce the good
B)the price of a complementary good
C)the price of the good next month
D)the price of a substitute good

Question 66

Which of the following is not a determinant of the demand for a particular good?

A)the prices of related goods
B)income
C)tastes
D)the prices of the inputs used to produce the good

Question 67

Which of the following changes would not shift the demand curve for a good or service?

A)a change in income
B)a change in the price of the good or service
C)a change in expectations about the future price of the good or service
D)a change in the price of a related good or service

Question 68

Holding the nonprice determinants of demand constant,a change in price would

A)result in either a decrease in demand or an increase in demand.
B)result in a movement along a stationary demand curve.
C)result in a shift of supply.
D)have no effect on the quantity demanded.

Question 69

If the demand for a good falls when income falls,then the good is called a(n)

A)normal good.
B)regular good.
C)luxury good.
D)inferior good.

Question 70

If a good is normal,then an increase in income will result in a(n)

A)increase in the demand for the good.
B)decrease in the demand for the good.
C)movement down and to the right along the demand curve for the good.
D)movement up and to the left along the demand curve for the good.

Question 71

Which of the following would shift the demand curve for gasoline to the right?

A)a decrease in the price of gasoline
B)an increase in consumer income,assuming gasoline is a normal good
C)an increase in the price of cars,a complement for gasoline
D)a decrease in the expected future price of gasoline

Question 72

The demand curve for coffee shifts

A)only when income changes.
B)when a determinant of the demand for coffee other than the price of coffee changes.
C)when the price of coffee changes.
D)Both b and c are correct.

Question 73

Kara receives a promotion at work,which increases her income.We would expect Kara's demand for

A)each good she purchases to remain unchanged.
B)normal goods to decrease.
C)substitute goods to increase.
D)inferior goods to decrease.

Question 74

You lose your job and,as a result,you buy fewer iTunes music downloads.This shows that you consider iTunes music downloads to be a(n)

A)luxury good.
B)inferior good.
C)normal good.
D)complementary good.

Question 75

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

A)inferior goods.
B)normal goods.
C)perfectly competitive goods.
D)durable goods.

Question 76

If a good is inferior,then an increase in income will result in a(n)

A)increase in the demand for the good.
B)decrease in the demand for the good.
C)movement down and to the right along the demand curve for the good.
D)movement up and to the left along the demand curve for the good.

Question 77

If a increase in income decreases the demand for a good,then the good is a(n)

A)substitute good.
B)complementary good.
C)normal good.
D)inferior good.

Question 78

Pizza is a normal good if the demand

A)for pizza rises when income rises.
B)for pizza rises when the price of pizza falls.
C)curve for pizza slopes upward.
D)curve for pizza shifts to the right when the price of burritos rises,assuming pizza and burritos are substitutes.

Question 79

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

A)The number of people who purchase olives decreases.
B)Consumer income decreases,and olives are a normal good.
C)The price of pickles decreases,and pickles are a substitute for olives.
D)The price of olives rises.

Question 80

If a decrease in income increases the demand for a good,then the good is a(n)

A)substitute good.
B)complementary good.
C)normal good.
D)inferior good.