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Law of Demand and Shifts of Demand

Last updated over 6 years ago

8 questions

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Question 1

1.

Using the image below, illustrate an increase in demand.

Question 2

2.

Which of the following would likely cause an increase in the demand for coffee?

Coffee bean prices dropped by 30%.

A drought in coffee growing regions lowers the production of coffee beans.

Coffee bean prices are expected to double in the next month.

New study suggests that coffee could be linked to pancreatic cancer.

Question 3

3.

The law of demand reflects

a consumer's willingness to purchase more of a product when her income rises

a consumer's willingness to purchase more of a product when the price of the product falls

a consumer's willingness to purchase more of a product when the price of a substitute rises

a consumer's willingness to purchase more of a product when she expects the future price of the product to rise

Question 4

4.

Examine the image above. A change in the price from $40 to $70 would lead to

an increase in demand

a decrease in demand

an increase in quantity demanded

a decrease in quantity demanded

Question 5

5.

Select two of the events below that could cause the shift shown in the market for apples.

The price of apples rises.

Apples are found to have a tremendous amount of pesticide in them.

Apple growing regions experience favorable weather, leading to a large crop.

The price of oranges, a subsitite for apples, falls.

Apple prices are expected to double next month.

Study shows that an apple a day really does keep the doctor away.

Question 6

6.

In the image above, real flow (1) to real flow (2) represents

Productive Resources

Goods and Services

Income

Revenue

Question 7

7.

In the image above, real flow (3) to real flow (4) represents

Income

Revenue

Goods and Services

Productive Resources

Question 8

8.

In the image above, real flow (5) to (6) and real flow (7) to (8) can best be described as

money payments.

scarce resources.

government regulation.

goods and services.