1. What is the difference between an "increase in demand" and an "increase in quantity demanded"?
- An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve.
- An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve. There is no difference between the two terms; they both refer to a shift of the demand curve.
- There is no difference between the two terms; they both refer to a movement downward along a given demand curve.
2. If, in response to an increase in the price of chocolate, the quantity demanded of chocolate decreases economists would describe this as
- a change in consumer income.
- a decrease in quantity demanded.
- a decrease in consumers' taste for chocolate.
- a decrease in demand.
3. By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ________ of the good.
- quantity; price; price
- quantity; price; quantity
- price; quantity; price
- price; quantity; quantity
4. If a demand curve shifts to the right, then
- demand has increased.
- quantity demanded has increased.
- quantity demanded has decreased.
- demand has decreased.
5. Holding everything else constant, an increase in the price of MP3 players will result in
- a decrease in the demand for MP3 players.
- an increase in the supply of MP3 players.
- a decrease in the quantity of MP3 players supplied.
- a decrease in the quantity of MP3 players demanded.