Demand Curve

Question 1

demand

Answer 1

desire for a good or service

Question 2

demand curve (downward sloping line on a graph with quantity on the x axis and price on the y axis)

Answer 2

relationship between the price of a good or service and the quantity of that good or service

Question 3

income can affect where the demand curve lies on the graph

Answer 3

• ex 1: your income decreases and prices stay the same so the curve shifts to the left
• ex 2: your income increases and prices stay the same so the curve shifts right

Question 4

substitutes

Answer 4

products that can replace another product

Question 5

complements

Answer 5

products that are purchased with something

Question 6

inferior products

Answer 6

products that are less valuable, but can replace more expensive options

Question 7

a substitute in demand means you can choose one or the other. you do not consume them together. therefore, if the price of a substitute increases, we expect the demand to do what?

Answer 7

shift right

Question 8

demand curve illustrates

Answer 8

at high prices, people what a small quantity. at low prices, people want a large quantity

Question 9

increase demand for jam

Answer 9

increase in the income of consumers of jam

Question 10

if there has been no change in price and the amount people are willing to buy has increase, then what has occurred

Answer 10

demand has increase, and shifted to the right

Question 11

a shift in demand occurs when the demand curve moves either to the left or right. the result is a change in quantity without a change in which of the following

Answer 11

price

Question 12

why are these two axis important

Answer 12

the two axis allow us to attach a numerical value to a numerical amount of the good

Question 13

if the demand for a particular good falls when income rises, then rises when income falls, what type of good is it

Answer 13

inferior good

Question 14

note

Answer 14

• jodi will decrease her food expenditures