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- 1. Multiple Choice
Combination of desire, ability, and willingness to buy a product
Demand
Inflation
Want
Supply
- 2. Multiple Choice
Graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time
Demand Schedule
Demand Curve
Inelastic
- 3. Multiple Choice
The diagram represents aincrease in demanddecrease in demand - 4. Multiple ChoiceThe law of demand refers to howdemand changes when people's incomes changedemand changes when the prices of substitutes and complements changethe quantity demanded changes when the price of the good changesthe price of the good changes when people's demand for the good changes
- 5. Multiple Choice
Rule stating that more will be demanded at lower prices and less at higher prices
Law of Demand
Ability
Marginal Utility
- 6. Multiple Choice
Satisfaction or usefulness obtained from acquiring one more unit of a product
Marginal Utility
Substitution Effect
- 7. Multiple Choice
Movement along the demand curve showing that a different quantity is purchased in response to a change in price
Change in quantity demanded
Demand Curve
- 8. Multiple Choice
The portion of a change in quantity demanded caused by a change in price that makes other products more or less costly
substitution effect
complements
demand
- 9. Multiple Choice
Consumer demand for different amounts at every price, causing the demand curve to shift to the left or the right
change in demand
change in quantity demanded
demand elasticity
- 10. Multiple Choice
Products related in such a way that an increase in the price of one reduces the demand for the other
complements
Law of Demand
marginal utility
- 11. Multiple Choice
The extent to which a change in price causes a change in the quantity demanded
demand elasticity
inelastic
- 12. Multiple Choice
Type of elasticity in which the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)
inelastic
demand elasticity
- 13. Multiple Choice
What are the characteristics of demand?
the desire and ability to buy a product
the ability and willingness to buy a product
the willingness and desire to buy a product
the desire, ability, and willingness to buy a product
- 14. Multiple Choice
Changes in quantity demanded and changes in price have a(n) _________ relationship.
indirect
positive
inverse
neutral
- 15. Multiple Choice
A hungry man is willing to pay a high price for food. After he is no longer hungry, he is not willing to pay the same high price. Which of the following best defines this example?
a complement
diminishing marginal utility
unit elasticity
the substitution effect
- 16. Multiple Choice
On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of
a change in price.
an increase in demand.
a decrease in demand.
a change in demand.
- 17. Multiple Choice
What is the income effect?
a change in quantity demanded caused by a change in consumer income
a change in demand caused by substitution
a proportional change in quantity demanded based on income
an increase in purchase of complements based on an increase in income
- 18. Multiple Choice
Which would an economist consider a likely substitute for coffee?
water
tea
chicken
donuts
- 19. Multiple Choice
Which would an economist consider a likely complement for coffee?
water
tea
chicken
donuts
- 20. Multiple Choice
Which product most likely has a demand that is inelastic?
Which product most likely has a demand that is inelastic?
green beans
a vital medicine
a vacation
- 21. Multiple Choice
What test do economists use to measure elasticity?
utility
revenue
total expenditures
demand
- 22. Multiple Choice
To estimate elasticity, compare the _________ of a price change to the _________ of the change in total revenue.
amount, amount
amount, direction
direction, amount
direction, direction
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