AnswersCHS American Studies 2B-CR .5 AMGUnit Test

The Law of Demand Answers

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1
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The graph shows a demand curve.The graph shows the demand curve shifting from D (orange) to D₁ (blue), with the new curve located to the left of the original curve.Which statement best explains this change?

Question illustration
A
A decrease in quantity demanded caused by an increase in the product's price.
B
A decrease in demand caused by a fall in income or a fall in the price of a substitue good.
C
An increase in demand caused by higher consumer income.
D
A movement along the demand curve caused by a price change.
2
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A demand curve shows how changes in

A
consumer demand affects income.
B
prices affect the consumer demand.
C
prices affect complementary goods.
D
consumer demand affects substitute goods.
3

Which best describes a reason that consumer demand can change?

A
loss of income
B
loss of supply
C
distribution problems
D
market problems
4

Maria purchases a premium brand of coffee at the grocery store for $8. Which would be considered a substitute good?

A
a coffee pot
B
a bottle of coffee creamer
C
a lower-priced brand of coffee
D
a pound of sugar
5

The chart shows a combined supply and demand schedule.

Question illustration
A
The cost to make a pair of shoes will rise.
B
A scarcity of shoes will result.
C
Profits from selling shoes will increase.
D
Consumers will want to buy fewer pairs of shoes.
6

A factor that most influences changes in consumer demand is

A
quantity.
B
price.
C
quality.
D
competition.
7

The graph shows a demand curve.Which most likely accounts for the changes shown on the demand curve?

Question illustration
A
More consumers want a product.
B
Fewer consumers want a product.
C
The price of a product rises a little.
D
The price of a product rises sharply.
8

The graph shows a demand curve.What does the data shown in this graph represent?

Question illustration
A
a decrease in quantity demanded as prices decrease
B
an increase in price as quantity demanded decreases
C
a decrease in income as quantity demanded increases
D
an increase in quantity demanded as prices decrease
9

Which best explains how the law of demand affects consumers?

A
It helps consumers know when prices are going down.
B
It helps consumers know when prices are going up.
C
It helps consumers tell producers when prices are too high.
D
It helps consumers tell producers when to make new goods.
10

According to the law of demand, as prices decrease, the quantity demanded

A
decreases.
B
increases.
C
stays the same.
D
disappears.

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