7 Demand

Question 1

individual behavior

Answer 1

microeconomics

Question 2

market is the central idea

Answer 2

microeconomics

Question 3

the relationship between buyers and sellers

Answer 3

market in microeconomics

Question 4

market force from customers

Answer 4

demand

Question 5

willingness and ability to buy good/service

Answer 5

demand

Question 6

desire and purchasing power must be present

Answer 6

demand

Question 7

nothing else changes

Answer 7

ceteris paribus

Question 8

inversely proportional law

Answer 8

law of demand

Question 9

price is the only factor

Answer 9

law of demand

Question 10

↑ price, ↓ demand
↓ price, ↑ demand

Answer 10

law of demand

Question 11

change in price affects purchasing power of disposable income

Answer 11

income effect

Question 12

change in price of substitute goods affects demand of other goods

Answer 12

substitution effect

Question 13

↑ price, ↓ purchasing power
↓ price, ↑ purchasing power

Answer 13

income effect

Question 14

↑ substitute price, ↑ demand of other
↓ substitute price, ↓ demand of other

Answer 14

substitution effect

Question 15

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

Answer 15

law of diminishing marginal utility

Question 16

↑ consumed, ↓ utility

Answer 16

law of diminishing marginal utility

Question 17

mathematical representative showing Qd and P

Answer 17

demand function

Question 18

compute potential profit

Answer 18

forecasting

Question 19

table that shows change in Qd and change in P

Answer 19

demand schedule

Question 20

graph version of demand schedule

Answer 20

demand curve

Question 21

along demand curve; caused by change in price

Answer 21

movement

Question 22

of demand curve; non-price factors

Answer 22

shift

Question 23

↑ Qd, ↓ income
↓ Qd, ↑ income

Answer 23

change in income (inferior goods)

Question 24

↓ Qd, ↓ income
↑ Qd, ↑ income

Answer 24

change in income (normal goods)

Question 25

same use; goods used in lieu of each other

Answer 25

substitute goods

Question 26

must have both as they compliment each other

Answer 26

complementary goods

Question 27

good 1: price ↓
good 2: demand ↓

good 1: price ↑
good 2: demand ↑

Answer 27

change in price of related goods and services (substitute goods)

Question 28

good 1: price ↑
good 2: demand ↓

good 1: price ↓
good 2: demand ↑

Answer 28

change in price of related goods and services (complementary goods)

Question 29

you like different things, so you don’t buy the things that you used to buy anymore

Answer 29

change in taste and preference

Question 30

anticipated increase in future price of basic commodity increases demand now

Answer 30

change in expectations

Question 31

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

Answer 31

change in expectations

Question 32

level and distribution of population among demographic groups affect demand

Answer 32

change in number of buyers

Question 33

responsiveness of demand to own price

Answer 33

price elasticity

Question 34

> 1

Answer 34

elastic

Question 35

< 1

Answer 35

inelastic

Question 36

= 1

Answer 36

unitary

Question 37

responsiveness of demand to change in price of other goods

Answer 37

cross elasticity

Question 38

responsiveness of demand to change in consumer income

Answer 38

income elasticity

Question 39

midpoint method

Answer 39

(Q2 - Q1) ÷ (Q2 + Q1)/2
(P2 - P1) ÷ (P2 + P1)/2

Question 40

TR method

Answer 40

Q₁ * TR₁
Q₂ * TR₂

Question 41

TR ↓

Answer 41

elastic

Question 42

TR ↑

Answer 42

inelastic

Question 43

TR =

Answer 43

unitary