Demand Review: (pick one) 29) A decrease in price of IFuzzy iWuzzys will result in a (decrease/increase) in (D/QD). 30) A decrease in income will cause an (increase/decrease) in (D/QD) for spam.

Demand is defined as an economic term that refers to a customer's ability to purchase goods and services and the ability to pay a premium for a given commodity or service....

3) quantity demanded 4) directly

“Change in Quantity Demanded” means that there is a movement along stable demand curve as a result of a change in price.

With introduction of calculator, the demand for the slide rule decreased and demand curve for slide rules shifted left.

14) If there is “decrease in price of butter”, then demand for its substitute margarine will decrease. This is a direct relationship.

If there is decrease in price of computers, then the demand for complement software will increase. This is inverse relationship.

Increase

19) Elastic Demand - a change in price cause a (smaller/larger) change in QD.20) Inelastic Demand- a change in price causes a (smaller/larger) change in QD.

23) Total revenue increase if an elastic product's price decreases.24) Total revenue decrease if an inelastic product's price decreases.

34) An increase in the price of Flip Video Camcorders will decrease QD.35) A decrease in taste for iPhones will cause an increase in D.