Chapter 4, part 2 (demand)

Question 1

Movement along the demand curve…

Answer 1

is caused by a change in the price of the good itself.

Question 2

Shift in the demand curve…

Answer 2

is caused by a change in any non-price determinant of demand, e.g. change in consumers income.

Question 3

Rightwards shift

Answer 3

increase in quantity demanded, more is demanded at each price

Question 4

leftwards shift

Answer 4

decrease in quantity demanded, less is demanded at each price.

Question 5

Factors that affect the demand for a good (9)

Answer 5

1-Price of the good itself
2-Price of other goods
3-Consumers expectations
4-Consumer taste/advertising
5-Unplanned factors
6-Government regulations
7-Change in income
8-Population/market price
9-Availability of credit, and rates of interest