Question

Match the following:

1. Counts as Demand
2. Does Not Count as Demand
3. Demand Increases
4. Demand Decreases
What happens to the demand for
goods and services if the population in
town decreases?
Sue buys a new computer.
Adam likes the new cell phone, but
cannot afford it.
What happens to the demand for
jeans if the price of a popular brand of
jeans decreases?

Answer 1

1. Demand Decreases - if the population in town decreases, the demand for goods and services will decrease as there are fewer people to buy them.
2. Does Not Count as Demand - Sue buying a new computer does not affect the overall demand for computers, it only affects the demand for that specific brand or model of computer.
3. Demand Increases - if the price of a popular brand of jeans decreases, the demand for jeans will increase as more people will be willing and able to buy them.
4. Does Not Count as Demand - Adam liking a new cell phone but not being able to afford it does not affect the overall demand for cell phones, as he is not able to purchase one.