Movements along the demand curve are called changes in
a. demand
b. opportunity costs
c. quantity demanded
d. the substitution effect
e. preferences
QUESTION 2In what way is consumer demand different from consumer wants?
a. Demand is only for necessities.
b. Demand is only for luxuries.
c. Demand takes into account the ability to pay.
d. Consumer wants are only for luxuries.
e. Consumer wants are only for necessities.
QUESTION 3The law of demand says that as the price of a good rises,
a. buyers recognize that price may be even higher in the future, and so they buy now
b. buyers purchase less in hopes that the price will fall in the future
c. buyers purchase less, in part because their real income has fallen
d. buyers purchase more, in part because the price of a substitute has risen
e. buyers purchase more, in part because it has higher status at a higher price
QUESTION 4The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later
b. consumers tend to shift their purchases to relatively cheaper substitutes
c. people will buy less of it in the hope that the good will be cheaper in the future
d. the consumer's money income increases, and he or she is less able to buy all goods, including the good whose price has increased
e. the consumer's money income decreases, and if the product is a normal good, more will be purchased
QUESTION 5The law of demand states that
a. there is a positive relationship between price and quantity demanded
b. price is the only factor that influences the quantity that people are willing and able to buy
c. price and quantity demanded are inversely related
d. the demand curve shifts whenever the price of a good changes
e. by producing a product, firms create a demand for it
QUESTION 6The law of demand says that the lower the price of a good, other things constant,
a. the smaller the demand for that good
b. the larger the demand for that good
c. the smaller the quantity demanded of that good
d. the larger the quantity demanded of that good
e. the smaller the real income of consumers and the lower the quantity demanded of that good
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