Chapter 4-2: Shifts of the Demand Curve
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by Patrick Hennes
| 24 Questions
Note from the author:
Shifts of the Demand Curve
1
1
When economists graph a demand curve they assume a condition referred to as ______________ _____________ . (2 words)
2
1
"Movement/change along the (demand) curve" occurs when the ONLY change is ____________ .
3
1
When price is the only thing that has changed in a market, economists refer to it as a "change in ___________ demanded."
4
1
If we assume ceteris paribus in a market then all changes must be _________ the curve.
5
1
When assuming ceteris paribus an economist means that the only thing that can possibly change in the market for a good/service would be ________________ .
6
1
Ceteris paribus, going from a price of $5 per unit to $2 per unit would lead to a change in _______________ __________________ . (2 words)
7
1
Which of the following would be the result of the change described in Question #6?
an increase in demand
a decrease in demand
an increase in quantity demanded
a decrease in quantity demanded
8
1
Which of the following is possible ONLY once we drop (get rid of) the ceteris paribus rule?
a change in quantity demanded
a change/shift in demand
movement along the curve
a change in price/quantity
9
1
Which of the following is represented by the graph above?
increase in demand
increase in quantity demanded
decrease in demand
decrease in quantity demanded
10
1
Going from P1 to P2 in the graph above means that price has ________________ .
11
1
Going from Q1 to Q2 in the graph above is an ______________ in ________________ demanded.
12
1
Going from D1 to D2 on this graph is considered
an increase in demand
a decrease in demand
an increase in quantity demanded
a decrease in quantity demanded
13
1
Assume that the graph above represents demand for Pancheros in Johnston. Which of the following would most likely explain what happened in moving from D1 to D2?
a new office building opened up down the street with over 1000 employees
there was an outbreak of food poisoning at other Pancheros locations throughout the metro area
Pancheros has lowered all of their prices by 10%
Pancheros increased all of their prices by 10%
14
1
A good/service for which demand increases as income increases is considered a(n) _____________ good.
15
1
A good/service for which demand decreases as income increases is referred to a(n) ___________ good.
16
1
Coffee from which of the following would most likely be considered a normal good?
Starbucks
McDonalds
Kum & Go
Casey's
17
1
Which of the following would most likely be considered an inferior good?
Ruby Tuesday
McDonalds
Fongs
Gusto
18
1
The expectation of a sale on a good/service in the future is most likely to lead to which of the following right now?
increase in quantity demanded
decrease in quantity demanded
increase in demand
decrease in demand
19
1
An increase in population through birth or immigration will most likely lead to a(n) ________________ in demand .
20
1
What is the most likely impact of this billboard?
an increase in quantity demanded
a decrease in quantity demanded
an increase in demand
a decrease in demand
21
1
This graph represents a(n)
22
1
Which of the following would most likely lead to the (current) shift from D to D' (in the graph above) if the good/service were considered "normal"?
expectation of a future 1/2 off sale
decrease in population due to an epidemic or war
Kylie Jenner (i.e., a celebrity) tweeting a negative review of the product
discovery that use of the good/service leads to weight loss
23
1
If two goods are "complements" they are bought and used ___________________ .
24
1
Pancheros and Chipotle would be considered ____________________ because if one of them raises their prices the other would likely see an _____________ in the demand for their products.
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