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Demand Practice I

Practice the important concepts from the lesson.

  1. What makes the Demand Curve shift?
    1. When a non-price determinant of demand changes
    2. The price changes
    3. When the demand schedule no longer exists
    4. When the law of demand no longer applies

    Answer: A. When a non-price determinant of demand changes

  2. If the price changed on the product...
    1. There would be a new point, put on the same demand curve.
    2. The curve would shift
    3. The demand curve would become circular
    4. The demand curve would be more vertical

    Answer: A. There would be a new point, but on the same demand curve.

  3. Which determinant of demand is correct? You are buying more skis in January.
    1. Weather/Season
    2. Market Size
    3. Price of Related Goods
    4. Income

    Answer: A. Weather/Season

  4. Which determinant of demand is correct? You bought a boat because you had a salary increase.
    1. Income
    2. Market Size
    3. Expectations
    4. Weather/Season

    Answer: A. Income

  5. Which determinant of demand is correct? You cut back on your purchases because you feel you are going to lose your job.
    1. Expectations
    2. Income
    3. Price of Related Goods
    4. Weather/Season

    Answer: A. Expectations

  6. Which determinant of demand is correct? Pepsi advertises during The Super Bowl.
    1. Market Size
    2. Price of Related Goods
    3. Expectations
    4. Weather/Season

    Answer: A. Market Size

  7. Which determinant of demand is correct? A certain type of boots are bought more today than 10 years ago.
    1. Tastes/Preferences
    2. Market Size
    3. Expectations
    4. Weather/Season

    Answer: A. Tastes/Preferences

  8. How would you draw a DEMAND CURVE SHIFT?
    1. Draw a new curve to the left or to the right of the original curve
    2. Keep the QD the same, but change the price
    3. Draw the new curve more vertical (steep) than the old one
    4. Draw another point on the same D1 curve

    Answer: A. Draw a new curve to the left or to the right of the original curve

  9. How would you draw a DEMAND CURVE SHIFT INCREASE?
    1. The D2 curve should be parallel and to the right of the D1 curve
    2. The D1 and D2 curves should intersect (cross)
    3. Draw the new curve more vertical (steep) than the old one and label it D2
    4. The D1 curve should be completely vertical and the D2 curve should be completely horizontal

    Answer: A. The D2 curve should be parallel and to the right of the D1 curve.

  10.  Apple juice and Pepsi are substitutes. If the price of apple juice decreases, what happens to the demand for Pepsi?
    1. The demand for Pepsi will decrease
    2. The demand for jelly will decrease
    3. The demand for Pepsi will increase
    4. The demand for Pepsi will be equal to the change in the demand for apple juice

    Answer: A. The demand for Pepsi will decrease.

  11. Peanut butter and jelly are complements. If the price of peanut butter decreases, what happens to the demand for jelly?
    1. The demand for jelly will increase
    2. They measure how much satisfaction a product gives you
    3. It is the number of potential buyers
    4. It is the number of items bought

    Answer: A. The demand for jelly will increase

  12. What are COMPLEMENTS?
    1. Two items that are different
    2. Buying Pepsi instead of Coke
    3. Buying apples instead of oranges
    4. Two items that are purchased together

    Answer: D. Two items that are purchased together.

  13. How would you draw a DEMAND CURVE SHIFT DECREASE?
    1. The D2 curve should be parallel to the left of the D1 curve.
    2. The D1 and D2 curves should intersect (cross)
    3. Do not draw another curve. Instead, mark a new point lower on the D1 curve.
    4. The D1 curve should be completely vertical and the D2 curve should be completely horizontal.

    Answer: A. The D2 curve should be parallel and to the left of the D1 curve.