10 questions
The desire to have some good or service and the ability to pay for it
supply
equilibrium
demand
quantity demanded
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
The quantity demanded of a good or service changes at all price levels best describes the concept of
change in quantity demanded
elasticity
change in demand
demand curve
Elasticity refers to
how producers of goods and services react to price changes
how consumers of goods and services react to price changes
how far a supply of scarce goods can be stretched
how often the price of a good or service changes when quantity demanded changes
Which of these demonstrates elastic demand?
a sharp increase in the price of milk causes a large drop in the quantity demanded for milk
the price of homes steadily increase but the quantity demanded for homes does not change
car dealerships cut prices to clear out previous year models and consumers rush to dealerships to take advantage of the sales
gas prices increase in the summer as more people want to go on road trips but the increases do not deter people from buying less gas
Which of these demonstrates inelastic demand? (multiple answers)
a cold snap destroys an apple crop causing prices to jump, however, people still buy apples and quantity demanded does not change
Super Bowl tickets hit record high prices but are still sold out in a matter of minutes and starting going for even higher prices on resale sites
concert tickets are not selling well, so the venue drops prices by 80%; the tickets sell out shortly thereafter
a restaurant starts charging a $10 delivery fee, delivery orders drop by 50% in the first month
Which of these shows a decrease in the quantity demanded?
Which of these shows an increase in the quantity demanded?
Which of these demonstrates inelastic demand?