Demand recap

In a diagram, D1 is the initial demand curve for student places at universities. D2 is the new demand curve which has shifted to the right. What could cause the demand curve to shift to D2?

• a decrease in student fees for universities

• a decrease in the level of youth unemployment

• an increase in graduate earnings compared with non-graduate earnings

• higher A Level grades demanded for university entrance

A rise in the price of a good is accompanied by an increase in the quantity demanded.

What could explain this?

• Consumers spend a high proportion of disposable income on the good.

• The price of a complementary good has also increased.

• The price of the good is taken to be an indication of the level of quality.

• The substitute goods are all very much more expensive.

Demand indicates how much good or service consumers are both ___________and ________ to buy at each possible price (price level) during a given period,______________.

The demand curve is a graph showing the relationship between the _________________________of a good and its ___________, ceteris paribus.

• price

• beauty

• quality

• quantity

The graph is plotted with the prices of the good on the ____________ against the quantity demanded for the good on the ______________.

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

The normal demand curve is ____________ sloping .

• upward

• downward

This indicates there is an __________________ relationship between the price of the good and the quantity demanded

• direct

• inverse

The reason why the demand curve is downward sloping is because of two effects: ______________ effect and ____________effect.

Market demand curves are obtained by

• determining the price each consumer is willing to pay for the good & summing those prices across all consumers
• observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph
• summing the quantities every consumer is willing to buy at each different price
• observing the behavior of an individual consumer in a market