Economics worksheet focusing on demand, including definitions and scenarios related to consumer behavior and market dynamics.
Worksheet titled "Demand" with fill-in-the-blank questions about economic concepts, featuring images of a smartphone and tablet.
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Show Answer Key & Explanations
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:* 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 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 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 increase real income (purchasing power), so people can afford more.
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!* This seems incorrect. Let’s fix it:
> When iPad prices drop, the Galaxy Tab becomes relatively more expensive, so people switch to iPads → more iPads are bought.
> So correction: "...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, prices of related goods.
97. 10. An “increase in income” would result in a(n) (increase/decrease) in (D/QD) for CDs.
> Answer: Increase in D (demand).
> *Assumption:* CDs are a normal good. Higher income → more demand.
97. 11. An “increase in income” would result in a(an) (increase/decrease) in (D/QD) for spam.
> Answer: Decrease in D.
> *Explanation:* Spam is an inferior good — people buy less of it when income rises.
97. 12. Successful advertising(taste) normally leads to a(an) (increase/decrease) in (D/QD).
> Answer: Increase in D.
> *Explanation:* Advertising increases desire/taste → shifts demand curve right.
97. 13. With the introduction of the calculator, the demand for the slide rule (increased/decreased) and the demand curve for slide rules shifted (right/left).
> Answer: Decreased, left.
> *Explanation:* Calculators are substitutes — better technology reduces demand for old tech.
98. 14. If there is a “decrease in the price of butter”, then the demand for its substitute, margarine will (increase/decrease). This is a (direct/inverse) relationship.
> Answer: Decrease, inverse.
> *Explanation:* Butter and margarine are substitutes. If butter gets cheaper, people buy less margarine.
98. 15. If there is a “decrease in the price of computers”, then the demand for the complement software will (increase/decrease). This is a(an) (direct/inverse) relationship.
> Answer: Increase, direct.
> *Explanation:* Computers and software are complements. Cheaper computers → more software bought.
98. 16. If there is a “decrease in the price of razor handles”, then the demand for the complement razor blades will (increase/decrease).
> Answer: Increase.
> *Explanation:* Razor handles and blades are complements — cheaper handles → more people use them → need more blades.
99. 17. If consumers “expect” a shortage of citrus crops due to bad weather, there will be a(an) (increase/decrease) in (D/QD) and the demand curve for citrus crops will shift to the (right/left).
> Answer: Increase, right.
> *Explanation:* Expectations of future scarcity lead to higher current demand.
99. 18. A “decrease in the number of consumers” will (increase/decrease) the (D/QD) for (normal/inferior/all) goods. This is a (direct/inverse) relationship.
> Answer: Decrease, all, inverse.
> *Explanation:* Fewer people → less overall demand for all goods.
102. 19. Elastic demand – a change in price causes a larger change in QD.
> *Elasticity > 1* — sensitive to price changes.
103. 20. Inelastic demand – a change in price causes a smaller change in QD.
> *Elasticity < 1* — not very responsive to price.
103. 21. An (elastic/inelastic) product has a flatter demand curve.
> Answer: Elastic
> *Flatter = more responsive = elastic.*
103. 22. An (elastic/inelastic) product has a steeper demand curve.
> Answer: Inelastic
> *Steeper = less responsive = inelastic.*
104. 23. Total expenditures (increase/decrease) if an elastic product’s price decreases.
> Answer: Increase
> *Because quantity demanded increases more than price drops → total revenue ↑.*
105. 24. Total expenditures (increase/decrease) if an inelastic product’s price decreases.
> Answer: Decrease
> *Quantity doesn’t rise much → total revenue ↓.*
106. 25. If a purchase for a product can be delayed, it is (elastic/inelastic).
> Answer: Elastic
> *People wait for lower prices → demand is flexible.*
106. 26. Put “I” for inelastic demand or “E” for elastic demand for the following products:
> - insulin → I (essential, no substitute)
> - butter → E (many substitutes like margarine)
> - new Honda Accord → E (luxury, can delay purchase)
> - Dell computers → E (many brands available)
> - table salt → I (cheap, necessary, few substitutes)
107. 27. If there are adequate substitutes for a product, it is (elastic/inelastic).
> Answer: Elastic
> *More substitutes → easier to switch → elastic demand.*
107. 28. If the purchase takes only a small portion of income, it is probably (elastic/inelastic).
> Answer: Inelastic
> *Example: Salt — even if price doubles, you still buy same amount.*
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29. A decrease in the price of iFuzzy iWuzzys will result in a (decrease/increase) in (D/QD).
> Answer: Increase in QD
> *Price ↓ → move down along demand curve → QD ↑*
30. A decrease in income will cause a[an] (increase/decrease) in (D/QD) for spam.
> Answer: Increase in D
> *Spam is inferior good → lower income → higher demand.*
31. A decrease in the price of coke will cause a[an] (increase/decrease) in (D/QD) for Pepsi.
> Answer: Decrease in QD
> *Coke and Pepsi are substitutes. Coke cheaper → fewer people buy Pepsi → QD ↓.*
32. An increase in QD for iPiggy iWiggys suggest (increase in taste/decrease in price/increase in income).
> Answer: Decrease in price
> *QD ↑ due to price change → movement along curve → price decreased.*
33. Consumer expectations of a price increase for Dell Computers will (incr/decr) (D/QD).
> Answer: Increase in D
> *Expecting higher prices later → buy now → demand shifts right.*
34. An increase in the price of Flip Video Camcorders will (increase/decrease) (D/QD).
> Answer: Decrease in QD
> *Higher price → less quantity demanded (movement along curve).*
35. A decrease in taste for iPhones will cause a(an) (increase/decrease) in (D/QD).
> Answer: Decrease in D
> *Taste falls → demand curve shifts left.*
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| Question | Answer |
|--------|--------|
| 1 | willingness, ability, desire |
| 2 | quantity demanded |
| 3 | quantity demanded |
| 4 | inversely |
| 5 | additional satisfaction, decrease |
| 6 | movement along a stable demand curve, price |
| 7 | richer, more; poorer, less |
| 8 | more expensive, more |
| 9 | change in non-price factors |
| 10 | increase, D |
| 11 | decrease, D |
| 12 | increase, D |
| 13 | decreased, left |
| 14 | decrease, inverse |
| 15 | increase, direct |
| 16 | increase |
| 17 | increase, right |
| 18 | decrease, all, inverse |
| 19 | larger |
| 20 | smaller |
| 21 | elastic |
| 22 | inelastic |
| 23 | increase |
| 24 | decrease |
| 25 | elastic |
| 26 | I, E, E, E, I |
| 27 | elastic |
| 28 | 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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- Change in QD = movement along the curve → caused by price.
- Change in Demand = shift of the entire curve → caused by non-price factors (income, taste, expectations, etc.).
- Elastic vs Inelastic: Depends on availability of substitutes, necessity, time, and income share.
- Substitutes: Price of one affects demand for other (opposite direction).
- Complements: Price of one affects demand for other (same direction).
Let me know if you'd like this printed or formatted into a clean answer sheet!
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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:* 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 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 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 increase real income (purchasing power), so people can afford more.
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!* This seems incorrect. Let’s fix it:
> When iPad prices drop, the Galaxy Tab becomes relatively more expensive, so people switch to iPads → more iPads are bought.
> So correction: "...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, prices of related goods.
97. 10. An “increase in income” would result in a(n) (increase/decrease) in (D/QD) for CDs.
> Answer: Increase in D (demand).
> *Assumption:* CDs are a normal good. Higher income → more demand.
97. 11. An “increase in income” would result in a(an) (increase/decrease) in (D/QD) for spam.
> Answer: Decrease in D.
> *Explanation:* Spam is an inferior good — people buy less of it when income rises.
97. 12. Successful advertising(taste) normally leads to a(an) (increase/decrease) in (D/QD).
> Answer: Increase in D.
> *Explanation:* Advertising increases desire/taste → shifts demand curve right.
97. 13. With the introduction of the calculator, the demand for the slide rule (increased/decreased) and the demand curve for slide rules shifted (right/left).
> Answer: Decreased, left.
> *Explanation:* Calculators are substitutes — better technology reduces demand for old tech.
98. 14. If there is a “decrease in the price of butter”, then the demand for its substitute, margarine will (increase/decrease). This is a (direct/inverse) relationship.
> Answer: Decrease, inverse.
> *Explanation:* Butter and margarine are substitutes. If butter gets cheaper, people buy less margarine.
98. 15. If there is a “decrease in the price of computers”, then the demand for the complement software will (increase/decrease). This is a(an) (direct/inverse) relationship.
> Answer: Increase, direct.
> *Explanation:* Computers and software are complements. Cheaper computers → more software bought.
98. 16. If there is a “decrease in the price of razor handles”, then the demand for the complement razor blades will (increase/decrease).
> Answer: Increase.
> *Explanation:* Razor handles and blades are complements — cheaper handles → more people use them → need more blades.
99. 17. If consumers “expect” a shortage of citrus crops due to bad weather, there will be a(an) (increase/decrease) in (D/QD) and the demand curve for citrus crops will shift to the (right/left).
> Answer: Increase, right.
> *Explanation:* Expectations of future scarcity lead to higher current demand.
99. 18. A “decrease in the number of consumers” will (increase/decrease) the (D/QD) for (normal/inferior/all) goods. This is a (direct/inverse) relationship.
> Answer: Decrease, all, inverse.
> *Explanation:* Fewer people → less overall demand for all goods.
102. 19. Elastic demand – a change in price causes a larger change in QD.
> *Elasticity > 1* — sensitive to price changes.
103. 20. Inelastic demand – a change in price causes a smaller change in QD.
> *Elasticity < 1* — not very responsive to price.
103. 21. An (elastic/inelastic) product has a flatter demand curve.
> Answer: Elastic
> *Flatter = more responsive = elastic.*
103. 22. An (elastic/inelastic) product has a steeper demand curve.
> Answer: Inelastic
> *Steeper = less responsive = inelastic.*
104. 23. Total expenditures (increase/decrease) if an elastic product’s price decreases.
> Answer: Increase
> *Because quantity demanded increases more than price drops → total revenue ↑.*
105. 24. Total expenditures (increase/decrease) if an inelastic product’s price decreases.
> Answer: Decrease
> *Quantity doesn’t rise much → total revenue ↓.*
106. 25. If a purchase for a product can be delayed, it is (elastic/inelastic).
> Answer: Elastic
> *People wait for lower prices → demand is flexible.*
106. 26. Put “I” for inelastic demand or “E” for elastic demand for the following products:
> - insulin → I (essential, no substitute)
> - butter → E (many substitutes like margarine)
> - new Honda Accord → E (luxury, can delay purchase)
> - Dell computers → E (many brands available)
> - table salt → I (cheap, necessary, few substitutes)
107. 27. If there are adequate substitutes for a product, it is (elastic/inelastic).
> Answer: Elastic
> *More substitutes → easier to switch → elastic demand.*
107. 28. If the purchase takes only a small portion of income, it is probably (elastic/inelastic).
> Answer: Inelastic
> *Example: Salt — even if price doubles, you still buy same amount.*
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Applying What You Have Learned
29. A decrease in the price of iFuzzy iWuzzys will result in a (decrease/increase) in (D/QD).
> Answer: Increase in QD
> *Price ↓ → move down along demand curve → QD ↑*
30. A decrease in income will cause a[an] (increase/decrease) in (D/QD) for spam.
> Answer: Increase in D
> *Spam is inferior good → lower income → higher demand.*
31. A decrease in the price of coke will cause a[an] (increase/decrease) in (D/QD) for Pepsi.
> Answer: Decrease in QD
> *Coke and Pepsi are substitutes. Coke cheaper → fewer people buy Pepsi → QD ↓.*
32. An increase in QD for iPiggy iWiggys suggest (increase in taste/decrease in price/increase in income).
> Answer: Decrease in price
> *QD ↑ due to price change → movement along curve → price decreased.*
33. Consumer expectations of a price increase for Dell Computers will (incr/decr) (D/QD).
> Answer: Increase in D
> *Expecting higher prices later → buy now → demand shifts right.*
34. An increase in the price of Flip Video Camcorders will (increase/decrease) (D/QD).
> Answer: Decrease in QD
> *Higher price → less quantity demanded (movement along curve).*
35. A decrease in taste for iPhones will cause a(an) (increase/decrease) in (D/QD).
> Answer: Decrease in D
> *Taste falls → demand curve shifts left.*
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✔ Final Summary Table:
| Question | Answer |
|--------|--------|
| 1 | willingness, ability, desire |
| 2 | quantity demanded |
| 3 | quantity demanded |
| 4 | inversely |
| 5 | additional satisfaction, decrease |
| 6 | movement along a stable demand curve, price |
| 7 | richer, more; poorer, less |
| 8 | more expensive, more |
| 9 | change in non-price factors |
| 10 | increase, D |
| 11 | decrease, D |
| 12 | increase, D |
| 13 | decreased, left |
| 14 | decrease, inverse |
| 15 | increase, direct |
| 16 | increase |
| 17 | increase, right |
| 18 | decrease, all, inverse |
| 19 | larger |
| 20 | smaller |
| 21 | elastic |
| 22 | inelastic |
| 23 | increase |
| 24 | decrease |
| 25 | elastic |
| 26 | I, E, E, E, I |
| 27 | elastic |
| 28 | 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:
- Change in QD = movement along the curve → caused by price.
- Change in Demand = shift of the entire curve → caused by non-price factors (income, taste, expectations, etc.).
- Elastic vs Inelastic: Depends on availability of substitutes, necessity, time, and income share.
- Substitutes: Price of one affects demand for other (opposite direction).
- Complements: Price of one affects demand for other (same direction).
Let me know if you'd like this printed or formatted into a clean answer sheet!
Parent Tip: Review the logic above to help your child master the concept of worksheet demand answers.
