Demand

Which of the following is a market?

• a garage sale

• a restaurant

• the New York Stock Exchange

• all of the above

If the demand for milk is downward sloping, then an increase in the price of milk will result in a(n)

• increase in the demand for milk.

• decrease in the demand for milk.

• increase in the quantity of milk demanded.

• decrease in the quantity of milk demanded.

Which of the following would be most likely to increase the demand for jelly?

• An increase in the price of peanut butter, which is often used with jelly

• An increase in income; jelly is a normal good

• The price of jelly falls

• Medical research that finds that daily consumption of jelly makes people live 10 years less, on average

Which of the following would not cause a change in the demand for cheese?

• an increase in the price of crackers, which are consumed with cheese

• an increase in the population of cheese lovers

• an increase in the price of cheese

• an increase in the income of cheese consumers

Ceteris paribus, an increase in the price of DVD players would tend to

• decrease the demand for DVDs.

• increase the demand for DVD players.

• increase the price of televisions, a complement to DVD players.

• decrease the demand for DVD players.

Whenever the price of Good A decreases, the demand for Good B increases. Goods A and B appear

to be

• inverse goods.

• normal goods.

• inferior goods.

• complements.

Whenever the price of Good A increases, the demand for Good B increases as well. Goods A and B

appear to be

• complements.

• substitutes.

• inferior goods.

• normal goods.

The difference between a change in quantity demanded and a change in demand is that a change in

• quantity demanded is caused by a change in a good’s own price, while a change in demand is

  caused by a change in some other variable, such as income, tastes, or expectations.

• demand is caused by a change in a good’s own price, while a change in quantity demanded is caused

  by a change in some other variable, such as income, tastes, or expectations.

• quantity demanded is a change in the amount people actually buy, while a change in demand is a

  change in the amount they want to buy.

• A change in demand and a change in quantity demanded are the same thing.

Suppose CNN announces that bad weather in Central America has greatly reduced the number of

cocoa bean plants and for this reason the price of chocolate is expected to rise soon. As a result,

• the current market demand for chocolate will decrease.

• the current market demand for chocolate will increase.

• the current quantity demanded for chocolate will decrease.

• no change will occur in the current market for chocolate.

The following table shows Hillary’s demand schedule for Cherry Blossom Makeup. Graph Hillary’s demand curve.