3.1.3.1 Demand

• The table illustrates an inverse relationship between price and demand.


  True
• As the price increases, the quantity demanded decreases.


  True
• What is the Law of Demand?

  Price up, demand down
• What happens to demand when the price of a substitute good decreases?

  Demand shifts left
• Individual demand refers to the quantity of a good or service that one person is willing and able to purchase at various prices
• Match the price with the corresponding market demand:

  $5 < item1_{e}nd > < item2_{s}tart > 25 units < item2_{e}nd > < pair_{e}nd > < pair_{s}tart > < item1_{s}tart >$10 ↔️ 20 units

  $15 ↔️ 15 units
• What happens to the demand curve when the price of a substitute good increases?

  Shifts to the right
• An increase in the number of consumers in the market will shift the demand curve to the left.

  False
• Market demand is the sum of all individual demands
• At a price of $10, the market demand is 20 units when individual demands are 8 units and 12 units.

  True
• The key difference between individual and market demand is that market demand is the sum of all individual demands
• Market demand in the given example is calculated by adding the demands of consumers A and B.


  True
• Increased health consciousness may decrease demand for unhealthy snacks
• The demand curve typically slopes upward from left to right.

  False
• Increased health consciousness may decrease demand for unhealthy snacks
• Higher prices of substitute goods increase demand for the original good.


  True
• How does an increase in the number of consumers in the market affect demand?

  Increases demand
• What happens to the demand curve when demand increases?

  Shifts to the right
• Arrange the following prices and quantities demanded to illustrate the inverse relationship between price and demand.

  1️⃣ Price: $10, Quantity: 50

  2️⃣ Price: $15, Quantity: 35

  3️⃣ Price: $20, Quantity: 20
• Market demand is the sum of all individual demands.

  True
• What is one example of a consumer preference shift that affects demand?

  Increased health consciousness
• Expectations about future prices, incomes, or availability of a good can affect current demand
• What is the effect of an increase in consumer income on the demand curve?

  Shifts rightward
• Increased health consciousness may decrease demand for unhealthy snacks.
• As the price increases, the quantity demanded decreases.
• A shift of the demand curve occurs when changes in price influence quantity demanded.

  False
• What is the effect of an increase in income on the demand curve?

  Shifts rightward
• What happens to the demand curve when the price changes and consumers adjust their purchases?

  Movement along the curve
• Demand refers to the quantity of a good or service that consumers are both willing and able to purchase at various prices
• The inverse relationship between price and demand is illustrated by a demand curve that slopes downward
• An increase in consumer income typically shifts the demand curve to the right
• An increase in the number of consumers in the market will increase total demand.


  True
• What is the relationship between individual demand and market demand?

  Market demand is the sum
• Market demand is the sum of all individual demands.

  True
• A shift in consumer tastes and preferences can alter the demand
• What does individual demand represent?

  One person's willingness to purchase
• What is the market demand when the price per unit is $5 and individual demands are 10 units and 15 units, respectively?

  25 units
• What is the market demand when the price per unit is $5 and individual demands are 10 units and 15 units, respectively?

  25 units
• What is the market demand when the price per unit is $15 and individual demands are 6 units and 9 units, respectively?

  15 units
• Match the factor with its effect on demand:

  Income ↔️ Increases demand

  Substitute prices ↔️ Higher prices increase demand

  Complementary goods ↔️ Lower prices increase demand

  Consumer tastes ↔️ Shifts demand