Economic demand worksheet with fill-in-the-blank questions and illustrations of electronic devices.
A worksheet titled "Worksheet - Demand" with questions about economic concepts like demand, demand schedule, demand curve, law of demand, and related terms, featuring images of an iPhone and an iPad.
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Step-by-step solution for: SOLUTION: Worksheet demand - Studypool
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Show Answer Key & Explanations
Step-by-step solution for: SOLUTION: Worksheet demand - Studypool
Let's go through the Demand Worksheet and fill in the blanks with correct answers, then explain key concepts for clarity.
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#### Definitions & Concepts (Fill-in-the-Blanks)
89. 1. Demand – the willingness, ability, & desire to buy a product.
> *Explanation:* Demand is not just wanting something — you must also be able and willing to pay for it.
90. 2. Demand schedule – listing (table) showing the quantity demanded at each price.
> *Explanation:* A table that pairs prices with how much consumers are willing to buy at those prices.
91. 3. Demand curve – graph showing the quantity demanded at each price.
> *Explanation:* The graphical representation of the demand schedule.
91. 4. Law of Demand – quantity demanded of a product varies inversely with price.
> *Explanation:* As price goes up, quantity demanded goes down; as price goes down, quantity demanded goes up.
93. 5. Diminishing marginal utility – states that the additional satisfaction we get from using additional quantities of the product begins to decrease.
> *Example:* The first slice of pizza is very satisfying, but the fifth slice may not be as enjoyable.
95. 6. "Change in QD" means that there is a movement along a stable demand curve as a result of a change in price.
> *Note:* Change in quantity demanded (QD) is due to price changes only — movement along the same curve.
96. 7. The “income effect” says that when prices drop (like gasoline), consumers are richer and they buy more. An increase in price means they are poorer and they buy less.
> *Explanation:* Lower prices stretch your dollar further, making you feel wealthier → more spending.
96. 8. “Substitution effect” says that when prices drop (like for the iPad), substitute goods (like the Galaxy Tab) become relatively more expensive, and fewer iPads are bought? Wait — correction:
> If iPad price drops, iPad becomes cheaper relative to substitutes → people buy more iPads and fewer substitutes.
So: (more/fewer) → more iPads are bought.
✔ Corrected:
→ Substitute goods become more expensive (relatively), and more iPads are bought.
96. 9. A “change in demand (curve)” results from a change in non-price factors.
> *Examples:* income, tastes, expectations, number of buyers, etc.
97. 10. An “increase in income” would result in a(n) increase in (D/QD) for CDs.
> *Assumption:* CDs are a normal good — demand increases as income rises.
97. 11. An “increase in income” would result in a(n) decrease in (D/QD) for spam.
> *Spam is an inferior good* — people buy less of it when they earn more.
97. 12. Successful advertising (taste) normally leads to a(n) increase in (D/QD).
> *Advertising increases desire*, so demand curve shifts right.
97. 13. With the introduction of the calculator, the demand for the slide rule decreased, and the demand curve shifted left.
> *Calculator is a substitute*, so slide rules became obsolete.
98. 14. If there is a “decrease in the price of butter”, then the demand for its substitute, margarine will decrease. This is an inverse relationship.
> Butter and margarine are substitutes. When butter gets cheaper, people use less margarine.
98. 15. If there is a “decrease in the price of computers”, then the demand for the complement software will increase. This is a direct relationship.
> Computers and software are complements — lower computer price → more computers sold → more software needed.
98. 16. If there is a “decrease in the price of razor handles”, then the demand for the complement razor blades will increase.
> Cheaper handles mean more people buy them → need more blades.
99. 17. If consumers “expect” a shortage of citrus crops... there will be an increase in (D/QD) and the demand curve will shift to the right.
> People buy more now before prices rise or supplies run out.
99. 18. A “decrease in the number of consumers” will decrease the (D/QD) for all goods. This is an inverse relationship.
> Fewer buyers = less total demand.
102. 19. Elastic demand – a change in price causes a larger change in QD.
> *Elastic:* sensitive to price changes.
103. 20. Inelastic demand – a change in price causes a smaller change in QD.
> *Inelastic:* not very responsive to price changes.
103. 21. An elastic product has a flatter demand curve.
> Flat = more responsive = elastic.
103. 22. An inelastic product has a steeper demand curve.
> Steep = less responsive = inelastic.
104. 23. Total expenditures (increase) if an elastic product’s price decreases.
> Because quantity demanded increases by a larger percentage than price drops → revenue increases.
105. 24. Total expenditures (decrease) if an inelastic product’s price decreases.
> Quantity doesn’t increase much, so total spending falls.
106. 25. If a purchase for a product can be delayed, it is elastic.
> You can wait until price drops → demand is elastic.
106. 26. Put “I” for inelastic demand or “E” for elastic demand:
- insulin: I (essential, no substitute, life-saving)
- butter: E (has substitutes like margarine)
- new Honda Accord: E (luxury item, can delay, many options)
- Dell computers: E (many alternatives, not essential)
- table salt: I (very cheap, no close substitute, small part of budget)
107. 27. If there are adequate substitutes for a product, it is elastic.
> More choices → more responsive to price changes.
107. 28. If the purchase takes only a small portion of income, it is probably inelastic.
> Example: salt or pencils — even if price doubles, you still buy it.
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29. A decrease in the price of iFuzzy iWuzzys will result in an increase in (QD).
> Price ↓ → QD ↑ (movement along the curve).
30. A decrease in income will cause a decrease in (D) for spam.
> Spam is an inferior good → lower income → higher demand. Wait! Let's double-check:
Wait:
- Inferior goods: demand increases when income decreases.
- So, decrease in income → increase in demand for spam.
✔ Correction:
30. A decrease in income will cause an increase in (D) for spam.
31. A decrease in the price of coke will cause an increase in (QD) for Pepsi.
> Coke and Pepsi are substitutes. Coke price ↓ → people switch to Coke → less Pepsi bought → QD for Pepsi decreases.
✔ Correction:
31. A decrease in the price of coke will cause a decrease in (QD) for Pepsi.
32. An increase in QD for iPiggy iWiggys suggests decrease in price.
> QD increases due to price drop → movement along the curve.
33. Consumer expectations of a price increase for Dell Computers will increase (D).
> People buy now before prices go up → demand curve shifts right.
34. An increase in the price of Flip Video Camcorders will decrease (QD).
> Higher price → less quantity demanded (movement along curve).
35. A decrease in taste for iPhones will cause a decrease in (D).
> Taste decreases → demand curve shifts left.
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| Question | Answer |
|--------|--------|
| 89 | willingness, ability, desire |
| 90 | quantity demanded |
| 91 | quantity demanded |
| 91 | inversely |
| 93 | additional satisfaction, decrease |
| 95 | movement along a stable demand curve, price |
| 96 | richer, more, poorer, less |
| 96 | more expensive, more |
| 96 | change in non-price factors |
| 97 | increase, D |
| 97 | decrease, D |
| 97 | increase, D |
| 97 | decreased, left |
| 98 | decrease, inverse |
| 98 | increase, direct |
| 98 | increase |
| 99 | increase, right |
| 99 | decrease, all, inverse |
| 102 | larger |
| 103 | smaller |
| 103 | elastic |
| 103 | inelastic |
| 104 | increase |
| 105 | decrease |
| 106 | elastic |
| 106 | I, E, E, E, I |
| 107 | elastic |
| 107 | inelastic |
| 29 | increase, QD |
| 30 | increase, D |
| 31 | decrease, QD |
| 32 | decrease in price |
| 33 | increase, D |
| 34 | decrease, QD |
| 35 | decrease, D |
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- Demand vs. Quantity Demanded:
- Demand (D) = entire curve shifts due to non-price factors (income, taste, etc.).
- Quantity Demanded (QD) = movement along the curve due to price changes.
- Normal vs. Inferior Goods:
- Normal: demand ↑ when income ↑
- Inferior: demand ↑ when income ↓ (e.g., ramen noodles, spam)
- Substitutes & Complements:
- Substitutes: if price of one ↓, demand for other ↓
- Complements: if price of one ↓, demand for other ↑
- Elasticity:
- Elastic: % change in QD > % change in price → flat curve
- Inelastic: % change in QD < % change in price → steep curve
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Let me know if you'd like this formatted as a printable PDF or want explanations for any specific question!
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Completed Worksheet – Demand
#### Definitions & Concepts (Fill-in-the-Blanks)
89. 1. Demand – the willingness, ability, & desire to buy a product.
> *Explanation:* Demand is not just wanting something — you must also be able and willing to pay for it.
90. 2. Demand schedule – listing (table) showing the quantity demanded at each price.
> *Explanation:* A table that pairs prices with how much consumers are willing to buy at those prices.
91. 3. Demand curve – graph showing the quantity demanded at each price.
> *Explanation:* The graphical representation of the demand schedule.
91. 4. Law of Demand – quantity demanded of a product varies inversely with price.
> *Explanation:* As price goes up, quantity demanded goes down; as price goes down, quantity demanded goes up.
93. 5. Diminishing marginal utility – states that the additional satisfaction we get from using additional quantities of the product begins to decrease.
> *Example:* The first slice of pizza is very satisfying, but the fifth slice may not be as enjoyable.
95. 6. "Change in QD" means that there is a movement along a stable demand curve as a result of a change in price.
> *Note:* Change in quantity demanded (QD) is due to price changes only — movement along the same curve.
96. 7. The “income effect” says that when prices drop (like gasoline), consumers are richer and they buy more. An increase in price means they are poorer and they buy less.
> *Explanation:* Lower prices stretch your dollar further, making you feel wealthier → more spending.
96. 8. “Substitution effect” says that when prices drop (like for the iPad), substitute goods (like the Galaxy Tab) become relatively more expensive, and fewer iPads are bought? Wait — correction:
> If iPad price drops, iPad becomes cheaper relative to substitutes → people buy more iPads and fewer substitutes.
So: (more/fewer) → more iPads are bought.
✔ Corrected:
→ Substitute goods become more expensive (relatively), and more iPads are bought.
96. 9. A “change in demand (curve)” results from a change in non-price factors.
> *Examples:* income, tastes, expectations, number of buyers, etc.
97. 10. An “increase in income” would result in a(n) increase in (D/QD) for CDs.
> *Assumption:* CDs are a normal good — demand increases as income rises.
97. 11. An “increase in income” would result in a(n) decrease in (D/QD) for spam.
> *Spam is an inferior good* — people buy less of it when they earn more.
97. 12. Successful advertising (taste) normally leads to a(n) increase in (D/QD).
> *Advertising increases desire*, so demand curve shifts right.
97. 13. With the introduction of the calculator, the demand for the slide rule decreased, and the demand curve shifted left.
> *Calculator is a substitute*, so slide rules became obsolete.
98. 14. If there is a “decrease in the price of butter”, then the demand for its substitute, margarine will decrease. This is an inverse relationship.
> Butter and margarine are substitutes. When butter gets cheaper, people use less margarine.
98. 15. If there is a “decrease in the price of computers”, then the demand for the complement software will increase. This is a direct relationship.
> Computers and software are complements — lower computer price → more computers sold → more software needed.
98. 16. If there is a “decrease in the price of razor handles”, then the demand for the complement razor blades will increase.
> Cheaper handles mean more people buy them → need more blades.
99. 17. If consumers “expect” a shortage of citrus crops... there will be an increase in (D/QD) and the demand curve will shift to the right.
> People buy more now before prices rise or supplies run out.
99. 18. A “decrease in the number of consumers” will decrease the (D/QD) for all goods. This is an inverse relationship.
> Fewer buyers = less total demand.
102. 19. Elastic demand – a change in price causes a larger change in QD.
> *Elastic:* sensitive to price changes.
103. 20. Inelastic demand – a change in price causes a smaller change in QD.
> *Inelastic:* not very responsive to price changes.
103. 21. An elastic product has a flatter demand curve.
> Flat = more responsive = elastic.
103. 22. An inelastic product has a steeper demand curve.
> Steep = less responsive = inelastic.
104. 23. Total expenditures (increase) if an elastic product’s price decreases.
> Because quantity demanded increases by a larger percentage than price drops → revenue increases.
105. 24. Total expenditures (decrease) if an inelastic product’s price decreases.
> Quantity doesn’t increase much, so total spending falls.
106. 25. If a purchase for a product can be delayed, it is elastic.
> You can wait until price drops → demand is elastic.
106. 26. Put “I” for inelastic demand or “E” for elastic demand:
- insulin: I (essential, no substitute, life-saving)
- butter: E (has substitutes like margarine)
- new Honda Accord: E (luxury item, can delay, many options)
- Dell computers: E (many alternatives, not essential)
- table salt: I (very cheap, no close substitute, small part of budget)
107. 27. If there are adequate substitutes for a product, it is elastic.
> More choices → more responsive to price changes.
107. 28. If the purchase takes only a small portion of income, it is probably inelastic.
> Example: salt or pencils — even if price doubles, you still buy it.
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Applying What You Have Learned
29. A decrease in the price of iFuzzy iWuzzys will result in an increase in (QD).
> Price ↓ → QD ↑ (movement along the curve).
30. A decrease in income will cause a decrease in (D) for spam.
> Spam is an inferior good → lower income → higher demand. Wait! Let's double-check:
Wait:
- Inferior goods: demand increases when income decreases.
- So, decrease in income → increase in demand for spam.
✔ Correction:
30. A decrease in income will cause an increase in (D) for spam.
31. A decrease in the price of coke will cause an increase in (QD) for Pepsi.
> Coke and Pepsi are substitutes. Coke price ↓ → people switch to Coke → less Pepsi bought → QD for Pepsi decreases.
✔ Correction:
31. A decrease in the price of coke will cause a decrease in (QD) for Pepsi.
32. An increase in QD for iPiggy iWiggys suggests decrease in price.
> QD increases due to price drop → movement along the curve.
33. Consumer expectations of a price increase for Dell Computers will increase (D).
> People buy now before prices go up → demand curve shifts right.
34. An increase in the price of Flip Video Camcorders will decrease (QD).
> Higher price → less quantity demanded (movement along curve).
35. A decrease in taste for iPhones will cause a decrease in (D).
> Taste decreases → demand curve shifts left.
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✔ Final Answers Summary:
| Question | Answer |
|--------|--------|
| 89 | willingness, ability, desire |
| 90 | quantity demanded |
| 91 | quantity demanded |
| 91 | inversely |
| 93 | additional satisfaction, decrease |
| 95 | movement along a stable demand curve, price |
| 96 | richer, more, poorer, less |
| 96 | more expensive, more |
| 96 | change in non-price factors |
| 97 | increase, D |
| 97 | decrease, D |
| 97 | increase, D |
| 97 | decreased, left |
| 98 | decrease, inverse |
| 98 | increase, direct |
| 98 | increase |
| 99 | increase, right |
| 99 | decrease, all, inverse |
| 102 | larger |
| 103 | smaller |
| 103 | elastic |
| 103 | inelastic |
| 104 | increase |
| 105 | decrease |
| 106 | elastic |
| 106 | I, E, E, E, I |
| 107 | elastic |
| 107 | inelastic |
| 29 | increase, QD |
| 30 | increase, D |
| 31 | decrease, QD |
| 32 | decrease in price |
| 33 | increase, D |
| 34 | decrease, QD |
| 35 | decrease, D |
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🔍 Key Takeaways:
- Demand vs. Quantity Demanded:
- Demand (D) = entire curve shifts due to non-price factors (income, taste, etc.).
- Quantity Demanded (QD) = movement along the curve due to price changes.
- Normal vs. Inferior Goods:
- Normal: demand ↑ when income ↑
- Inferior: demand ↑ when income ↓ (e.g., ramen noodles, spam)
- Substitutes & Complements:
- Substitutes: if price of one ↓, demand for other ↓
- Complements: if price of one ↓, demand for other ↑
- Elasticity:
- Elastic: % change in QD > % change in price → flat curve
- Inelastic: % change in QD < % change in price → steep curve
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Let me know if you'd like this formatted as a printable PDF or want explanations for any specific question!
Parent Tip: Review the logic above to help your child master the concept of demand worksheet answers.
