Chapter 2 - Demand An Supply

Question 1

THE INVERSE RELATIONSHIP BETWEEN THE PRICE AND QUANTITY DEMANDED OF A GOOD OR SERVICE DURING SOME PERIOD OF TIME

Answer 1

LAW OF DEMAND

Question 2

GOODS THAT ARE USED IN CONJUNCTION WITH EACH OTHER. THERE IS AN INDIRECT RELATIONSHIP BETWEEN THE PRICE OF ONE GOOD AND THE DEMAND FOR ANOTHER

Answer 2

COMPLEMENTARY GOODS

Question 3

GOODS THAT ARE NOT RELATED AT ALL, SO THAT A CHANGE IN THE PRICE OF ONE GOOD WILL HAVE NEGLIGIBLE IMPACT ON THE DEMAND FOR THE OTHER

Answer 3

INDEPENDENT GOODS

Question 4

COMMODITIES WHOSE DEMAND VARIES DIRECTLY WITH MONEY INCOME

Answer 4

NORMAL GOODS

Question 5

COMMODITIES WHOSE DEMAND VARIES DIRECTLY WITH MONEY INCOME

Answer 5

SUPERIOR GOODS

Question 6

COMMODITIES WHOSE DEMAND VARIES INVERSELY WITH MONEY INCOME

Answer 6

INFERIOR GOODS

Question 7

GOODS THAT CAN BE USED IN PLACE OF ANOTHER GOOD; THERE IS A DIRECT RELATIONSHIP BETWEEN THE PRICE OF ONE GOOD AND THE DEMAND FOR ANOTHER

Answer 7

SUBSTITUTE GOODS

Question 8

THE DIRECT RELATIONSHIP BETWEEN THE PRICE AND THE QUANTITY SUPPLIED OF A GOOD OR SERVICE DURING SOME PERIOD OF TIME

Answer 8

LAW OF SUPPLY