Chapter 4 – Flashcards
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If you were to graph this demand schedule, the demand curve would
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slope downward from left to right
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Which of the following choices could cause the movement shown in this graph
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a decrease in income
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The movement in the graph shows that the quantity demanded of butter decreased because the:
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price of margarine decreased
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Which of the following choices could cause the movement shown in this graph?
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a decrease in the price of Blue-ray players
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What does the movement shown on this graph represent
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the inverse relationship between price and quantity demanded
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The change from old demand curve to the new demand curve shown in the table represents a
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shift of the demand curve to the right
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For most products n services, an increase in price results in
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a decrease in quantity demanded
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an increase in the price of milk causes a decrease in the demand for cereal. The 2 products are
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complements
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advertising, fashion trends, and new product introductions serve to
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create consumer demand
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if a modest price increase has little or no effect, the demand for the product is
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inelastic
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A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred
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a dramatic decline in revenues demonstrated that the demand for the product was elastic
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According to this demand curve, if the price of DVDs increases from $14 to $16, the quantity demanded will
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fall from 600 to 400
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Which of the following events could cause the movement shown in the graph
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an increase in population
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a demand schedule shows
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a listing of the various quantities demanded of a particular product at all prices that might prevail in the market
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Consumers' willingness to buy more of an item when its prices goes down is partially due to
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the income effect
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An increase in the price of cameras results in a decrease in the demand for film. The 2 products are
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complements
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When a customer's need for a product is not urgent, demand tends to be
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elastic
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When a manufacturer of pain medication reduced the price of the medication by 30%, the quantity demanded increased by almost exactly 30%. Demand for the product is
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unit elastic
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Based on the passage and what you know about demand, why are series of baseball cards dropping?
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consumer tastes changed to favor Game Boys and MP3s
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When barbie dolls first started to become widely popular overseas, how did this newfound popularity likely affect the demand curve for Barbie dolls?
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The demand curve probably shifted to the right, indicating an increase in demand
