Question : 3.1   The Demand Side of the Market 1) The market for : 1387360

3.1   The Demand Side of the Market

1) The market for smart phones has grown rapidly over the past few years, due in part to the overwhelming success of the Apple iPhone. Following the successful launch of the iPhone in 2007, companies such as Samsung, HTC, and LG have all introduced products to compete with the iPhone. The smart phones introduced to compete with the iPhone would be considered

A) complements to the iPhone.

B) substitutes for the iPhone.

C) inferior goods compared to the iPhone.

D) normal goods compared to the iPhone.

2) If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will

A) decrease the demand for the iPhone.

B) increase the demand for the Galaxy.

C) increase the quantity demanded for the Galaxy.

D) increase the quantity demanded for the iPhone.

3) What is the difference between an “increase in demand” and an “increase in quantity demanded”?

A) There is no difference between the two terms; they both refer to a shift of the demand curve.

B) 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.

C) There is no difference between the two terms; they both refer to a movement downward along a given demand curve.

D) 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.

4) The demand by all the consumers of a given good or service is the ________ for the good or service.

A) market demand

B) quantity demanded

C) law of demand

D) scheduled demand

5) If, in response to an increase in the price of chocolate the quantity of chocolate demanded decreases, economists would describe this as

A) a decrease in demand.

B) a decrease in quantity demanded.

C) a change in consumer income.

D) a decrease in consumers’ taste for chocolate.

6) 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.

A) quantity; price; quantity

B) price; quantity; quantity

C) price; quantity; price

D) quantity; price; price

7) The law of demand implies, holding everything else constant, that

A) as the price of bagels increases, the quantity of bagels demanded will decrease.

B) as the price of bagels increases, the demand for bagels will decrease.

C) as the price of bagels increases, the quantity of bagels demanded will increase.

D) as the price of bagels increases, the demand for bagels will increase.

8) If a demand curve shifts to the right, then

A) demand has increased.

B) quantity demanded has increased.

C) demand has decreased.

D) quantity demanded has decreased.

9) If a demand curve shifts to the left, then

A) demand has increased.

B) quantity demanded has increased.

C) demand has decreased.

D) quantity demanded has decreased.

10) Holding everything else constant, an increase in the price of MP3 players will result in

A) a decrease in the quantity of MP3 players supplied.

B) a decrease in the demand for MP3 players.

C) an increase in the supply of MP3 players.

D) a decrease in the quantity of MP3 players demanded.