Law of Demand and Shifts of Demand
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by Stephanie Foy
| 8 Questions
1
1
Using the image below, illustrate an increase in demand.
2
1
Which of the following would likely cause an increase in the demand for coffee?
Coffee bean prices dropped by 30%.
A drought in coffee growing regions lowers the production of coffee beans.
Coffee bean prices are expected to double in the next month.
New study suggests that coffee could be linked to pancreatic cancer.
3
1
The law of demand reflects
a consumer's willingness to purchase more of a product when her income rises
a consumer's willingness to purchase more of a product when the price of the product falls
a consumer's willingness to purchase more of a product when the price of a substitute rises
a consumer's willingness to purchase more of a product when she expects the future price of the product to rise
4
1
Examine the image above. A change in the price from $40 to $70 would lead to
an increase in demand
a decrease in demand
an increase in quantity demanded
a decrease in quantity demanded
5
1
Select two of the events below that could cause the shift shown in the market for apples.
The price of apples rises.
Apples are found to have a tremendous amount of pesticide in them.
Apple growing regions experience favorable weather, leading to a large crop.
The price of oranges, a subsitite for apples, falls.
Apple prices are expected to double next month.
Study shows that an apple a day really does keep the doctor away.
6
1
In the image above, real flow (1) to real flow (2) represents
Income
Productive Resources
Goods and Services
Revenue
7
1
In the image above, real flow (3) to real flow (4) represents
Income
Productive Resources
Goods and Services
Revenue
8
1
In the image above, real flow (5) to (6) and real flow (7) to (8) can best be described as
goods and services.
government regulation.
money payments.
scarce resources.
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