Shifting Demand

What are factors (besides price) that determine demand

• income, prices of related goods, demand curve

• consumer taste, market size, decisions by businesses

• demand curve, market size, income

• market size, income, consumer taste/style

As income rises...

• demand decreases

• demand increases

• demand is unchanged

• demand fluctuates

Which of these is NOT a factor that affects market size?

• consumer expectations

• income

• diminishing marginal utility

• government policy

If the price of milk is increasing, you may go buy almond milk instead. What is this?

• diminishing marginal utility

• income effect

• substitute goods

• government intervention

Paint is on sale, so you decide to paint the house. You also have to buy paint brushes, drop cloths and buckets. What are these?

• substitute goods

• increased market size

• income effect

• complimentary goods

A new band gets to perform on the Jimmy Kimmel show, so people become interested and download the band onto their Spotify playlist. What has happened?

• market size decreased

• market size increased

• positive consumer expectations for the future

• income effect

Demand curve shows level of consumer demand for a product. If there is an INCREASE in demand due to one of the demand shifters, what happens to the curve?

• shift right

• shift left

• no change, it doesn't even matter

• changes direction

When prices rise for a particular product, consumers will purchase lower-priced similar items..

• income effect

• substitute effect

• diminishing marginal utility

• law of demand

The basic problem of economics is ___.. we just don't have the resources to take care of ALL of our wants/needs!

• opportunity cost

• diminishing marginal utility

• purchasing power

• scarcity

A product may be amazing, but unless people can actually afford it, it's not really in deman.

• True

• False