58 section 2 Supply and Demand
c. Demand will increase today.
d. Demand will decrease today.
e. No change will occur today.
- Which of the following will increase the demand for disposable
diapers?
a. a new “baby boom”
b. concern over the environmental effect of landfills
c. a decrease in the price of cloth diapers
d. a move toward earlier potty training of children
e. a decrease in the price of disposable diapers - If an increase in income leads to a decrease in demand, the good is
a. a complement.
b. a substitute.
c. inferior.
d. abnormal.
e. normal. - Which of the following will occur if consumers expect the price
of a good to fall in the coming months?
a. The quantity demanded will rise today.
b. The quantity demanded will remain the same today.
Tackle the Test: Free-Response Questions
- Create a table with two hypothetical prices for a good and two
corresponding quantities demanded. Choose the prices and
quantities so that they illustrate the law of demand. Using your
data, draw a correctly labeled graph showing the demand curve
for the good. Using the same graph, illustrate an increase in
demand for the good.
Answer (6 points)
1 point:Table with data labeled “Price” (or “P”) and “Quantity” (or “Q”)
1 point:Values in the table show a negative relationship between P and Q
1 point:Graph with “Price” on the vertical axis and “Quantity” on the horizontal
axis
1 point:Negatively sloped curve labeled “Demand” or “D”
1 point:Demand curve correctly plots the data from the table
1 point:A second demand curve (with a label such as D 2 ) shown to the right of
the original demand curve
- Draw a correctly labeled graph showing the demand for apples.
On your graph, illustrate what happens to the demand for
apples if a new report from the Surgeon General finds that an
apple a day really doeskeep the doctor away.
10
14
$4
2
Price Quantity
0
Price
Quantity
$4
2
10 14
D D 2