7 Demand

Question 1

individual behavior

Answer 1

microeconomics

Question 2

market is the central idea; relationship between buyers and sellers

Answer 2

microeconomics

Question 3

market force from customers

Answer 3

demand

Question 4

willingness and ability to buy a good/service

Answer 4

demand

Question 5

desire + purchasing power; BOTH must be present for there to be ____

Answer 5

demand

Question 6

Ceteris Paribus

Answer 6

“nothing else changes”

Question 7

inversely proportional law

Answer 7

law of demand

Question 8

price is the only factor when considering the data

Answer 8

law of demand

Question 9

change in price affects purchasing power of disposable income

Answer 9

income effect

Question 10

change in price of substitute goods affect demand of other goods

Answer 10

substitution effect

Question 11

↑ price; ↓ purchasing power
↓ price; ↑ purchasing power

Answer 11

income effect

Question 12

↑ sub. price; ↑ demand of other
↓ sub. price; ↓ demand of other

Answer 12

substitution effect

Question 13

consume until marginal utility is equal to marginal cost (price)

Answer 13

law of diminishing marginal utility

Question 14

↑ consumed; ↓ utility

Answer 14

law of diminishing marginal utility

Question 15

mathematical rep. showing quantity demanded (Qd) and price (P)

Answer 15

demand function

Question 16

mathemathical rep. in TABLE showing change in Qd and P

Answer 16

demand schedule

Question 17

graph version of demand schedule

Answer 17

demand curve

Question 18

movement along demand curve; caused by change in price

Answer 18

demand movement

Question 19

shift of demand curve; non-price factors

Answer 19

demand shift

Question 20

every time it shifts to the right, demand goes up; if it shifts to the left, demand goes down

Answer 20

demand shift

Question 21

pertaining to same price

Answer 21

demand shift

Question 22

jumps from one curve to another

Answer 22

demand movement

Question 23

curve doesn’t change

Answer 23

demand movement

Question 24

quantity demanded ↑ when income ↑

Answer 24

normal goods

Question 25

quantity demanded ↓ when income ↑

Answer 25

inferior goods

Question 26

goods involved in “change in income”

Answer 26

normal goods and inferior goods

Question 27

same use; goods used in lieu of each other

Answer 27

substitute goods

Question 28

directly proportional relationship between price and demand for ____ goods

Answer 28

substitute goods

Question 29

must have both as they compliment each other; you cannot use one without having the other

Answer 29

complementary goods

Question 30

have an indirectly proportional relationship between price and demand for _____ goods

Answer 30

complementary goods

Question 31

PRODUCT A
1) price ↑
2) price ↓

PRODUCT B
1) demand ↑
2) demand ↓

Answer 31

subsitute goods

Question 32

goods involved in “change in price of related goods”

Answer 32

substitute goods and complementary goods

Question 33

CGOOD 1
price ↑
price ↓

CGOOD 2
demand ↓
demand ↑

Answer 33

complementary goods

Question 34

anticipated increase in future price of basic commodity increases demand now

Answer 34

change in expectations

Question 35

expected increase of future income will increase willingness to spend current savings

Answer 35

change in expectations

Question 36

level and distribution of population among demographic groups affect demand

Answer 36

change in number of buyers

Question 37

responsiveness of demand to its own price

Answer 37

price elasticity

Question 38

5 non-price factors affecting demand

Answer 38

1) change in income
2) change in price of related goods
3) change in taste and preferences
4) change in expectations
5) change in number of buyers

Question 39

responsiveness of demand to change in price of other goods

Answer 39

cross elasticity

Question 40

responsiveness of demand to change in consumer income

Answer 40

income elasticity