Choose that Law of Demand Answer Key - EconEdLink
Would You Demand It?
Law of Demand Answer Key
Name:
Date:
Directions: Chose the best answer for each question.
1. The law of demand states that
a. as price increases, quantity demanded increases.
b. as price increases, quantity demanded decreases.
c. price and quantity demanded do not affect each other.
2. (True/False) According to the law of demand, price and quantity demanded move in the
opposite direction.
3. If the price of cell phones increases, then the quantity demanded of cell phones will
__________________. (all other things being equal)
a. increase
b. decrease
c. stay the same
4. If the price of ice cream decreases, then the quantity demanded of ice cream will
__________________. (all other things being equal)
a. increase
b. decrease
c. stay the same
5. Which graph shows a decrease in price and an increase in quantity demanded?
(Note that changes in quantity demanded are shown as movements along the demand
curve)
a.
b.
Price
Price
Demand Curve
Original
Price
New
Price
New
Price
Original
Price
Original
Quantity
New
Quantity
Quantity
Demand Curve
New
Quantity
Original
Quantity
Quantity
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