Lesson 3. Demand and determinants of demand

_________ is the amount of product that people would be willing and able to purchase at every possible price. Meanwhile, _________ is the amount of a product that people are willing and able to purchase at a specific price.

• Demand; Quantity demanded

• Quantity demanded; Demand

According to the law of demand, when price ............, the quantity demanded .....

• increases, decreases

• increases, increases

When consumers’ income increases, demand for normal goods ______ and the demand curve shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

When there are less buyers, demand ______ and the demand curve shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

When prices are expected to decrease in the future, demand ______ and the demand curve shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

When consumer’s income is expected to rise in the future, demand ______ and the demand curve shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

When consumers don’t like the products, demand ______ and the demand curve shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

Flight tickets and accommodation are complimentary goods. When the price of flight tickets falls, demand for accommodation ______ and the demand curve of accommodation shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

Omachi and HaoHao are substitute goods. When Omachi’ price rises, demand for HaoHao ______ and the demand curve of HaoHao shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward

When consumers’ income increases, demand for cheap motel rooms ______ and the demand curve shifts ________

• Increases; leftward

• Increases; rightward

• Decreases; leftward

• Decreases; rightward