LESSON 9

How much are consumers willing to pay? (demand)

Activity 34:
Comprehension quiz, lesson 9

PART I
Answer the following by placing the letter of the correct definition in the blank in front of each term.

	Term	Definition
C	1. demand	A. products that may not be exactly the same but which may be put to the same use
F	2. determinant of demand	B. a graphic representation of the number of items that will be demanded at various prices
B	3. demand curve	C. the willingness and ability to buy something
A	4. substitutes	D. a belief in future changes that affects one's willingness to buy products now
D	5. expectations	E. people will buy more units of a good at a lower price than at a higher price
E	6. law of demand	F. anything, other than price, that affects customers' willingness to buy a product

 

PART II
Study the graph to the right and answer the following questions.

7. How many pairs of socks would be sold at a price of $4?

2 pairs

8. If there were a cold spell, would the demand curve for socks move to the left or to the right?

It would move to the right

Explain how the law of demand is demonstrated by the graph.

The curve shows the law of demand because more socks are demanded at lower prices than at higher prices.

Used with permission. Master Curriculum Guide: Economics and Entrepreneurship, copyright © 1991,National Council on Economic Education, New York, NY. All rights reserved.For more information visit www.ncee.net or call 1-800-338-1192.