AP Microeconomics : Demand Quiz

Quiz
*Theme/Title: Demand
* Description/Instructions
Demand represents the amounts that consumers are willing and able to buy at every possible price. The Law of Demand infers that consumers will usually buy more at a lower price and less at a higher price since the demand curve is downward sloping and to the right. The quantity demanded is a single point on the demand curve whereas the entire curve is "demand." There are three reasons why the demand curve is negatively sloped. The first reason is Diminishing Marginal Utility. The second is the income effect. And the third is the substitution effect. There are five underlying factors that build the demand curve. These factors are: Tastes and Preferences, Related Goods, Income, number of Buyers, and Expectations of future prices. A good mnemonic is TRIBE for remembering the underlying factors that shift the demand curve to the left or to the right. A movement along the curve is called a change in quantity demanded and is easily identified by a change in price. This is because the demand curve related the price and quantity of a good.

Group: AP Microeconomics AP Microeconomics Quizzes
Topic: AP Microeconomics



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