2.1.1 Demand

    Cards (42)

    • Demand refers to the quantity of a good or service that consumers are willing and able to buy at different prices
    • Changes in consumer tastes and preferences can increase or decrease demand
    • Match the factor with its effect on demand:
      Income ↔️ Direct relationship
      Consumer tastes ↔️ Increase or decrease
    • The Law of Demand explains the effect of income changes on demand.
      False
    • Demand refers to the quantity of a good or service that consumers are willing and able to buy at different prices
    • What type of relationship exists between the price of a complementary good and the demand for the original good?
      Direct relationship
    • The Law of Demand states that as the price of a good increases, the quantity demanded decreases
    • The downward slope of the demand curve reflects diminishing marginal utility
    • What is the primary factor that shifts the demand curve?
      Factors other than price
    • Higher prices of complements shift the demand curve to the left.
      True
    • Why does the demand curve shift to the right when the price of a substitute good increases?
      Consumers switch to the original good
    • Higher prices always lead to lower demand for a good.
      True
    • The Law of Demand states that as the price of a good increases, the quantity demanded decreases.demanded
    • The demand curve slopes upward from left to right.
      False
    • A demand schedule is a table that shows the quantity consumers are willing and able to buy at different prices
    • Steps to construct a demand schedule and curve
      1️⃣ List different possible prices
      2️⃣ Determine corresponding quantities
      3️⃣ Plot price-quantity pairs
      4️⃣ Connect the points to form the curve
    • Factors other than price can shift the demand curve.

      True
    • Higher incomes shift the demand curve to the right
    • Understanding demand shifters is crucial for businesses to predict consumer behavior.
      True
    • Quantity demanded represents a single point
    • What happens to the quantity demanded of coffee if its price increases?
      Decreases
    • Higher incomes lead to lower demand for normal goods.
      False
    • Higher prices lead to higher quantity demanded.
      False
    • The Law of Demand states that as the price of a good increases, the quantity demanded decreases
    • What is the effect of higher prices on the quantity demanded according to the law of demand?
      Lower quantity demanded
    • Higher income leads to lower demand for normal goods.
      False
    • Steps to construct a demand curve
      1️⃣ List possible prices
      2️⃣ Determine corresponding quantities
      3️⃣ Plot price-quantity pairs
      4️⃣ Connect points to form curve
    • What happens to the demand curve when income increases?
      Shifts to the right
    • What is the effect on the demand curve of a higher price for a complementary good?
      Shifts to the left
    • Higher incomes shift the demand curve to the right
    • Order the factors that shift demand from most direct to most indirect effect:
      1️⃣ Income
      2️⃣ Prices of related goods
      3️⃣ Consumer tastes and preferences
      4️⃣ Number of consumers
    • Demand refers to the quantity of a good or service that consumers are willing and able to buy at different prices over a given period of time.prices
    • What is the fundamental principle of the Law of Demand?
      Inverse relationship between price and quantity
    • Steps to construct a demand schedule and curve:
      1️⃣ List possible prices
      2️⃣ Determine corresponding quantities
      3️⃣ Plot price-quantity pairs
      4️⃣ Connect points to form the curve
    • What is the relationship between price and quantity demanded according to the law of demand?
      Inverse
    • The demand curve slopes downward from left to right.

      True
    • The downward slope of the demand curve reflects the diminishing marginal utility
    • Match the factor with its effect on the demand curve:
      Income ↔️ Higher income shifts the demand curve to the right
      Consumer tastes ↔️ Positive changes shift the demand curve to the right
      Number of consumers ↔️ More consumers shift the demand curve to the right
      Prices of substitutes ↔️ Higher prices shift the demand curve to the right
    • What happens to the demand curve for normal goods if consumer incomes rise?
      Shifts to the right
    • Match the concept with its description:
      Demand ↔️ Relationship between price and quantity
      Quantity demanded ↔️ Specific quantity at a particular price
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