Demand 3.1-3

Question 1

A change in the price of a good results in?

Answer 1

A change in quantity demanded

Question 2

Does a change in price result in a shift or movement along the demand curve?

Answer 2

A change in price results in a movement along the demand curve.

Question 3

According to the law of demand, the price of a good and the quantity demanded have what type of relationship?

Answer 3

Inverse relationship

Question 4

A change in one of the other variables that are usually held constant results in consumers…?

Answer 4

Demanding more of the good at every price

Question 5

Does the change in other variables that are usually held constant result in a shift or movement on the demand curve?

Answer 5

All other variables usually held constant cause a shift in the demand curve

Question 6

A movement along the demand curve is caused by?

Answer 6

The change of quantity demanded that results from a change in price

Question 7

The demand curve never shifts when there

is a change in one of the variables measured on the axes. (True or False?)

Answer 7

True

Question 8

The phenomenon called change in demand is caused by what?

Answer 8

If one of the previously constant

variables changes we have to construct a new demand schedule and curve.

Question 9

Suppose the price of ice cream, a complement for cake, decreases. In what direction will the demand curve shift?

Answer 9

The demand curve will shift outward

Question 10

People expect the price of gasoline to fall in the near future. What will be the impact on the demand curve in the present as a result of this future expectation?

Answer 10

There will be an inward shift in the demand curve

Question 11

What causes shifts in the demand curve?

Answer 11

Changes in other variables usually held constant

Question 12

What causes movements in the demand curve>

Answer 12

Changes in price